Digital-euro vocabulary translated into plain English.
- CBDC
- Central Bank Digital Currency — digital money issued by a central bank. The digital euro would be the eurozone's CBDC.
- Holding limit
- A maximum amount of digital euro any one person could hold, proposed to prevent sudden large shifts out of bank deposits.
- Trilogue
- Closed-door negotiations between the European Parliament, the Council of the EU, and the European Commission to agree the final text of a law.
- Eurosystem
- The European Central Bank plus the national central banks of countries that use the euro.
- PSP
- Payment Service Provider — a supervised firm (usually your bank) that would give you access to the digital euro on behalf of the Eurosystem.
- Legal tender
- Money that must be accepted for payment of debts. Euro cash is legal tender; the proposal would give the digital euro legal tender status too.
- Offline payment
- A payment made between two devices without an internet connection, designed to be private like cash.
- Waterfall / reverse waterfall
- Automatic top-up and drain features that would move money between your bank account and your digital euro wallet if you hit the holding limit or run low.