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An executive board member of the ECB is urging Apple to modify the payment system on iPhones to accommodate a possible digital euro. He asserts that the current framework of the tech company may not facilitate offline transactions for any digital currency issued by the European Central Bank.
The board member, Piero Cipollone, expressed his apprehensions in a letter to EU antitrust chief Margrethe Vestager, dated April 19.
“Apple’s suggested commitments would not provide third parties with complete access to the secure element (SE), but would only permit the use of Host Card Emulation (HCE),” he stated. To clarify, a secure element (SE) is a dedicated chip designed for heightened security, functioning like a small safe within a device, typically found in smartphones, tablets, and some credit cards.
Additionally, he believes that Apple’s proposal may not deliver the same level of authentication and transaction speed as ApplePay.
Apple did not respond to Cryptonews’ request for comment by the time of publication.
Limited NFC Access on iPhones Creates Friction for Potential Digital Euro
Cipollone further noted that Apple’s current proposals do not guarantee a fair competitive environment for third-party payment solutions, particularly for in-store transactions using iPhones. If these proposals were implemented for a potential digital euro, they would not ensure a seamless payment experience on iPhones, according to the economist.
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He also pointed out certain shortcomings in the EU’s recent antitrust inquiry into Apple, stating that it does not tackle the restricted access to near-field communication (NFC) technology in various payment scenarios, including person-to-person transactions.
“We emphasize that this use case is essential for the digital euro,” he remarked.
ECB Pushes for Open Access to Phone Security Chips for Digital Euro
The economist indicated that the proposed regulation for the digital euro mandates that device manufacturers and electronic communication service providers must provide fair, reasonable, and non-discriminatory access to the secure element within their devices.
He stated that this access should be unrestricted and not dependent on other mobile operating system applications, ensuring that digital euro payments on mobile devices are user-friendly.
The European Commission has published draft legislation that lays the foundation for a potential digital euro, which includes establishing fundamental criteria and preparing necessary laws for potential issuance.
In late 2023, the ECB commenced a two-year preparatory phase for the digital euro, which involves finalizing regulations, selecting private-sector partners, and conducting testing and experimentation.
The post iPhone Currently Not Compatible with Digital Euro: ECB Board Member appeared first on Cryptonews.
