“In the standardization processes associated with the digital euro, my thesis posits that underlying conflicts become particularly pronounced and subject to heightened politicization.”

An interview with our fellow David Hengsbach

Standardisation of coins and money

Romy & Jonathan: Hello David, you have been a member of the Research Training Group since April 2023. Could you share the motivations that led you to apply for the RTG “Standards of Governance”?

David: The interdisciplinary structure of the Research Training Group, coupled with its strong connections to economic and financial sociological research, was particularly compelling to me when I applied. Standardization has gained significant prominence in the economic and financial spheres, especially in the context of globalization, and it now occupies a central position in contemporary sociological and political economic research. During my previous studies, I focused specifically on the (historical) standardization of coins and monetary systems. Building on this perspective, the opportunity to explore the digitalization of money within the framework of the research group appeared both intellectually stimulating and highly promising.

“Standardisation and rule-making play a key role in the ECB’s project.”

Romy & Jonathan: The title of the RTG is quite broad. What are your preliminary reflections on the concept of “standards of governance”?

David: My initial associations center on the transformations in governance within modern societies and the ways in which standards introduce new forms of coordination and control. Standards are designed to harmonize social and technical practices. Notably, the title of the Research Training Group suggests that governance is not only increasingly enacted through and by the establishment of standards but is also itself becoming subject to standardization processes. These processes codify norms and procedural rules, shaping conceptions of what constitutes good governance.

Romy & Jonathan: What is the focus of your research, and in which thematic direction is your dissertation progressing?

David: I have been deeply engaged with the European Central Bank (ECB) for several years, and since the beginning of my doctoral research, I have increasingly focused on the ECB’s activities in the area of payment transactions. Currently, the ECB is working on the development of a digital euro, which would enable citizens to make cashless payments via their smartphones in the future. Standardization and rule-making play a key role in the ECB’s project, as standards define operational responsibilities and technical processes. Specifically, this includes the development of technical standards to ensure the consistent implementation of the digital euro by intermediaries—such as banks and payment service providers—who will be responsible for its distribution. My research centers on the negotiation of these standardization processes, examining the conflicting normative and political ambitions that shape the development of the common rules.

“Sociology has increasingly recognized payment systems as central infrastructures.”

Romy & Jonathan: Thank you for providing insight into your project. To what degree does your research hold social relevance?

David: In recent years, sociological research has increasingly recognized payment systems as central infrastructures that, often operating outside of public awareness, facilitate critical social and financial processes essential to the functioning of modern (market) societies. The digital euro represents not only the creation of a public, pan-European payment infrastructure but also the potential to fundamentally alter the division of labor between the European Central Bank (ECB) and the banking sector. My thesis argues that the conflicts surrounding the extent of this transformation will become particularly evident and politicized in the standardization processes associated with the digital euro.

Romy & Jonathan: Has your doctoral project evolved or become more focused since you joined the RTG programme?

David: Since beginning my doctorate in the RTG, not only has my theoretical understanding of standardization processes become more refined through the diverse discussions within the research group, but my approach to empirically investigating and interpreting the disputes and conflicts in the development of standards has also evolved. This is likely influenced by the fact that the standardization committee at the European Central Bank (ECB) only commenced its work in January 2023, requiring me to adapt my empirical approach in response to the ongoing developments within the Digital Euro Programme.

“The diversity of literature and research approaches within the scope of the Research Training Group is consistently evident in the discussions among its members. “

Romy & Jonathan: A doctorate within a Research Training Group differs from other forms of doctoral study in several ways. In your view, what are the key advantages of pursuing a doctorate within such a framework?

David: The close collaboration within the highly interdisciplinary group of professors, fellows, post-docs, associates, and fellow doctoral students is certainly worth emphasizing. This collaboration fosters stimulating discussions among participants from diverse disciplines and perspectives, enriching both the intellectual exchange and the research process. It also broadens the programmatic and practical research horizons, extending beyond the direct connection to the supervising professor. A doctorate within a Research Training Group thrives on its strong institutional integration, which significantly eases the navigation of the often challenging doctoral journey.

Romy & Jonathan: The RTG comprises political scientists, sociologists, philosophers, and legal scholars. How does this interdisciplinarity and diversity contribute to the development of your doctoral project?

David: The diversity of literature and research approaches within the scope of the Research Training Group is consistently evident in the discussions among its members. This not only facilitates the assimilation of relevant research literature but also allows for a more critical and comprehensive understanding of the research phenomenon of standards and standardization. The often contentious debates between professors and fellows are undoubtedly rooted in disciplinary differences and contribute to a critical examination and development of one’s own (research) perspective.

Romy & Jonathan:  How does the collaboration between the Goethe University and the Technical University of Darmstadt influence your research and doctoral project?

David: The collaboration not only strengthens the interdisciplinarity of the Centre but also provides valuable exposure to diverse research contexts, enabling the development of potential collaborations relevant to researchers’ individual projects. This creates opportunities to engage with professors and researchers that might otherwise be inaccessible within the confines of a single university. Additionally, the cooperation offers unique insights into organizational research processes, thereby enhancing the overall research experience.

“The empirical exploration of my research field”

Romy & Jonathan: What benefits do you anticipate gaining from the international research opportunities provided within the framework of the Research Training Group?

David: An international research stay offers valuable opportunities to gain insights into different research cultures and, through close collaboration with a relevant researcher in one’s field, expand both theoretical and empirical perspectives. This experience can serve as a crucial component in the successful realization of a research project. Furthermore, a research stay provides the opportunity to present and discuss one’s own research in a new context, allowing for further refinement and development of the work.

Romy & Jonathan: What are the key focus areas and objectives of your research in the coming months?

David: The upcoming months will be focused on the qualitative analysis of interviews already conducted with ECB and bank representatives, followed by the acquisition of additional interviews. After a largely conceptual first year, 2024 will shift towards the empirical exploration of my research field, with an emphasis on developing and presenting initial insights derived from the interview and document analyses.

Romy & Jonathan: Thank you very much for your interesting answers.

The interview was conducted by Romy Knappe and Jonathan Mück in July 2024.