A digital euro should prioritize online purchases and making payments among friends, the European Central Bank said in documents published on its website.

The slideshow, published for a Wednesday meeting, says other uses such as paying taxes, receiving welfare payments, or even paying in physical stores would only follow in a later, second tranche of developments for the central bank digital currency (CBDC).

“In practical terms, a staggered approach would contribute to ensure a smooth end-user payment experience” and “reduce the implementation complexities” of trying to roll out new systems all at once, said the document, produced by the ECB’s digital euro project team.

The first release would be for e-commerce, and for peer-to-peer payments made among private individuals, the document said. Officials on the team have previously said use cases like paying wages, or applications that could align with decentralized finance, should be kicked into the long grass and considered only in a later phase.

(By Jack Schickler)

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