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I believe having commercial banks distributing/intermediating CBDC has been acknowledged as the right model for the digital Euro. On the case for issuing CBDC, there are several reasons for doing that , and among those  it's worth remembering there is a decreasing amount of cash in circulation already in several Countries, with negative impacts on real economies.

The test is definitely interesting, as it builds on top of existing strenghts of the three involved parties, and represent an answer of trusted ecosystems to the competition of Fintechs. However the liquidity settlement "matter" would possibly deserve additional evaluation of different technologies too.

Thanks Ralph very clear and realistic picture. One thought I would add is about the end-users perspective, either consumers or businesses; the risk financial institutions would bring - in order to make money available to the payee before settlement occurs -  might be considered somehow transparent to end users, and as a consequence they could easily embrace - as you say - a "quicker to market" non SEPA-based solution, increasing the risk of a fragmented market and partially incompatible real-time payment ecosystem. The right balancing of EU project schedule, and a bit more inclusion of Instant Payment CSMs models (i.e. which settlement risk is applicable/acceptable ?) in the schema design would possibly help the adoption process here ?