site.btaPreparation for Transition to Euro-Denominated Card Payments Nears Completion - Central Bank Deputy Governor Chobanov

Preparations for the transition to euro-denominated card payments and the integration of the BORICA card payment system into TARGET - scheduled for completion by year’s end - are in their final stages, Petar Chobanov, Deputy Governor of the Bulgarian National Bank (BNB) in charge of the Banking Department, said in a BTA interview. 

BNB, in cooperation with the banking community and BORICA AD, has already implemented several strategic projects: full integration with TARGET2-Securities, STEP2, and TIPS. The TIPS platform enables users to make local and cross-border euro payments within ten seconds at any time of the day. As of 2023, all client payments in Bulgarian lev comply with SEPA standards, which significantly facilitates the transition to euro-denominated payments, Chobanov added.

The BNB Deputy Governor said that 25% of household deposits and 32% of corporate deposits are already held in euros. 

After the country joins the euro area, the BNB's Banking Department will support key tasks, including supervising payment systems and service providers, managing TARGET-BNB and participating in the Eurosystem's monetary policy. The BNB will be able to provide liquidity support to banks when needed and will continue to collect statistical data in coordination with the European Central Bank, Chobanov added.

Chobanov also stressed the importance of the digital euro, which will offer free and secure payments, promote financial inclusion and strengthen the strategic independence of the European payments market.