Digital Euro Project Launched by the Eurosystem

The European Central Bank (ECB) has announced the launch of the investigation phase of a digital euro project. This phase will last for 24 months and will focus on addressing key issues related to the design and distribution of a digital euro. The aim is to ensure that a digital euro can meet the needs of Europeans while also preventing illicit activities and avoiding any negative impact on financial stability and monetary policy. It is important to note that a digital euro would complement cash, not replace it. During this investigation phase, the Eurosystem will work on a functional design based on users’ needs through focus groups, prototyping, and conceptual work. The project will also assess the possible impact of a digital euro on the market and will consider privacy and risk management options. The investigation phase will benefit from the experimentation work done over the past nine months, which has shown no major technical obstacles. The ECB will continue to engage with the European Parliament and other policymakers throughout this phase.

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