Eurosystem advances to the next stage of digital euro initiative

The Governing Council of the European Central Bank (ECB) has announced that it will begin the preparation phase for the digital euro project. This decision comes after a two-year investigation phase that focused on the design and distribution of a digital euro. The preparation phase will involve finalizing the rulebook for the digital euro and selecting providers to develop the platform and infrastructure. It will also include testing and experimentation to ensure that the digital euro meets the requirements of the Eurosystem and user needs. The ECB will continue to engage with the public and stakeholders throughout this phase. The launch of the preparation phase does not mean that a digital euro will be issued, as the final decision will depend on the completion of the European Union’s legislative process. The digital euro is envisioned as a widely accessible and privacy-focused digital form of cash that can be used for all digital payments in the euro area. It aims to promote resilience, competition, and innovation in the European payments sector. Users will be able to access digital euro services through their payment service provider’s app or a digital euro app provided by the Eurosystem. The digital euro would be free for basic use and could be exchanged for cash at cash machines. The Eurosystem will bear its own costs related to scheme management and settlement processing. The project emphasizes transparency and close cooperation with stakeholders, and the ECB will continue to engage with decision-makers, market participants, and potential users.

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