The Accountability of the European Central Bank for the Digital Euro

This chapter looks at the accountability of the European Central Bank (ECB) for the digital euro­­­­­. It argues that, as the ECB’s areas of activity and tasks expand by issuing a new form of central bank money, they should be matched by robust accountability and transparency arrangements. The chapter looks at the ECB’s accountability during this phase of development of the digital euro and its engagement with other institutional actors and stakeholders. The focus then shifts to the division of competences between the ECB and the EU legislators, which is determinative of the legal framework through which the digital euro rules would be adopted. We then turn to consider the accountability provisions once the digital euro is established. It is argued that the proposed accountability arrangements do not fall foul of the Treaty requirements, and that strong accountability provisions are necessary to fortify the ECB’s legitimacy.