The Governing Council of the European Central Bank (ECB) has approved a new regulatory framework for the oversight of electronic payments, which includes an assessment of the effectiveness and security of Bitcoin wallets and cryptocurrency services, according to the press release.
The Oversight Framework for Electronic Payment Instruments, Schemes and Arrangements (PISA framework) contains the assessment methodology and incentive policy.
The ECB is using a new system to monitor companies that enable and support the use of payment cards, credit transfers, direct debit, wire transfers and electronic payment tokens.
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The PISA will also cover crypto-related services, including merchant acceptance of assets and the ability to send and receive these assets through a digital wallet.
According to Board of Governors member Fabio Panetta, the retail payments ecosystem is changing rapidly and therefore requires rethinking the approach:
"The PISA framework will include digital payment tokens such as stablecoins, alongside traditional payment instruments and schemes we have gained experience in over the years."
Firms subject to Eurosystem oversight are expected to start adhering to the new regulations no later than November 15, 2022. All other firms will receive a grace period of one year from the date of notification that the firm has become subject to the department's regulations.