The digital economy is on the road to decentralization through the use of DLT, which is of particular interest for the financial industry. In essence, DLT is a decentralized “data base” which allows all its users to have the same information. All participants have a copy of the same data base which is updated automatically.
Neutral bodies such as FMIs are well positioned to develop forward looking solutions together with other actors in the financial industry due to their expertise, robust IT systems, their highly regulated processes and the established trust.

Deutsche Börse Group welcomes the different regulatory developments fostering innovation regarding DLT/Blockchain and the use of crypto assets, at both the EU and national levels, with the so called “Digital Finance Package” starting the political processes on: 

• Regulation on the markets in crypto assets (MiCA)
• Regulation on a pilot regime on DLT market structure
• Targeted changes of EU financial markets regulations referring to crypto assets qualifying as financial instruments  
• Digital operational resilience act (DORA)
• Introduction of electronic securities in Germany and adjustments to solutions proposed in DORA and Mica (Finanzmarktdigitalisierung)
• Law facilitating dematerialization in Luxembourg

Nevertheless, parts of the European Commission's proposal for the Pilot regime still raise some questions and we believe that some adjustments will be necessary to ensure consumer protection, market integrity, and a level playing field. Experience from past financial crises has shown that fundamental principles such as consumer protection, financial stability or the conduct of an orderly monetary policy must not be compromised and must be ensured in the interest of society, irrespective of the technology used and also in the context of a testing phase.

These principles should not be invalidated by the mere reference to the promises of new technologies. Innovation and new ideas must be allowed to mature within a stable regulatory framework which reconciles competition, investor protection and financial stability.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

Artificial Intelligence (AI) is a collection of technologies that combines large amounts of data (Big Data), algorithms and computing power.

The enhanced gathering of data and progress in the computing power has led to the extended use of AI in all areas of life from customer support to digital personal assistants. The impact on the financial industry is equally significant and enables the easier identification of attempted fraud, investment patterns and much more.

Application of AI enables more efficiently structured working procedures and contributes to a faster and more individualized service for customers. Currently, Deutsche Börse Group is using AI to support services especially in the area of post-trading and the development of new products in the area of market data.

With the field of AI dynamically developing, so are the relating regulatory initiatives and projects. Deutsche Börse Group is following the developments closely and remains actively engaged in the process. 

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.  

In light of the greater use of e-payment methods and EU’s digital transition, the digital euro could support the EU’s digital finance and retail payment strategies utilizing its potential as an additional, innovative and safe means of payment. As such, the digital euro could promote accessibility and financial inclusion, while facilitating the development of pan-European and interoperable payment solutions which would increase resilience and financial stability of the EU’s ever-digitizing economy.

The digital euro is envisaged as a central bank digital currency (CBDC), available free of charge to everyone and complementing existing banknotes and coins. It would be stored in an electronic wallet set up with a bank or a public intermediary, allowing efficient and safe e-payment. It would also strengthen monetary sovereignty of the euro area and foster competitiveness of the European payment sector. 

The European Commission initiated a legislative proposal on the retail digital euro in 2023, currently still being examined by the co-legislators. On the wholesale digital euro, the European Central Bank (ECB) initiated exploratory work on new technologies for the settlement of wholesale financial transactions in November 2023. During the exploratory phase (so called “ECB trials”), the ability for money and securities to be processed and exchanged simultaneously on a digital ledger, across three different National Central Bank (NCB) payment solutions, was successfully showcased. 

Deutsche Börse Group participated in the ECB trials and demonstrated its ability and readiness to connect to either of the three NCB’s solutions. Following what is widely regarded as one of the most successful sandboxes, the ECB’s Executive Board confirmed the institution's commitment to continue exploring solutions for a wholesale digital euro. 

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.