Seminars

Payment markets have  significantly transformed over the last few decades, both globally and at EU level. As consumer demand for digital solutions grows, innovations have surged throughout the EU’s retail payment ecosystem. New players have entered the market, while established ones are capitalising on emerging opportunities. Consumers now benefit from more choice, as well as a more personalised digital payment experience.

Financial markets have experienced heavy regulatory activity over the last 15 years – from crisis response and the founding of the European Supervisory Authorities (ESAs), through to banking union, the creation of the Single Supervisory Mechanism (SSM), the launch of the Capital Markets Union (CMU), and more recently to the beginnings of the sustainable and digital finance agendas. This intense rule-making rollercoaster raises the question – what next?

On 7 February, 2024, the European Parliament endorsed the new instant payments proposal with an overwhelming majority. The regulation requires Payment Service Providers (PSPs) to offer their customers the possibility of making payments from one account to another within ten seconds – a significant acceleration of the process. The instant payment must be offered to the customer at the same price as a ‘traditional’ bank transfer.

Most central banks in advanced economies consider issuing central bank digital currencies (CBDCs), not only to address the declining use of cash, but also to position themselves against increased competition from Big Tech companies, cryptocurrencies, and stablecoins.

Digital currencies are a concern for regulators alike, which has resulted in the Markets in Crypto-assets Regulation (MiCAR) proposal of the European Commission to regulate cryptocurrencies and ensure investor protection.

Governments, authorities and businesses have implemented credit moratoria, intended to offer temporary relief to borrowers impacted by COVID-19. A total of 24 EU Member States enforced either a legislative or non-legislative moratoria during this period. With the roll out of vaccines and easing of lockdown measures, when is the right time to phase out these moratoria?