The EU’s digital euro is inching closer to the ‘preparation phase’

Share This Post

The European Union is heading into the “preparation phase” of its digital euro project.

According to the Governing Council of the European Central Bank, the next phase will start on Nov. 1 and will last two years. The ECB first launched an investigation into the digital euro back in 2021.

“It will involve finalizing the digital euro rulebook and selecting providers that could develop a digital euro platform and infrastructure. It will also include testing and experimentation to develop a digital euro that meets both the Eurosystem’s requirements and user needs, for example in terms of user experience, privacy, financial inclusion and environmental footprint,” the ECB wrote.

Digital privacy is a priority for the digital euro, with the Eurosystem hiding personal data and aiming to “achieve a cash-like level of privacy for offline payments.”

Read more: European Union’s digital euro may run on UTXO

The Eurosystem will also plan to maintain the ledger or “root of title” of the money being issued as well as the settlement of transactions of the digital euro. The Eurosystem, therefore, would “take responsibility for recoding digital euro liabilities in its own books.”

“We envisage a digital euro as a digital form of cash that can be used for all digital payments, free of charge, and that meets the highest privacy standards. It would coexist alongside physical cash, which will always be available, leaving no one behind,” ECB President Christine Lagarde said. 

Read more: European Central Bank launches 24-month investigation into digital euro

In the previous — or current until November — phase, the ECB ran tests and “concluded that it is possible to smoothly integrate a digital euro into the existing payment landscape, while still leaving scope for the market to use innovative features and technologies when distributing a digital euro.”

While the project moves into its next phase, the ECB noted that it is “closely” following legislation and a decision on a digital euro will be considered “only after the legislative act is adopted.”

Don’t miss the next big story – join our free daily newsletter.

Follow Sam Bankman-Fried’s trial with the latest news from the courtroom

The EU’s digital euro is inching closer to the ‘preparation phase’ is written by Katherine Ross for

Related Posts

US energy officials agree to ‘destroy’ all data from crypto mining survey

United States energy officials have reached an agreement with...

Binance’s woes in Nigeria continue to mount

Binance’s woes in Nigeria continue to mount.  There was confusion...

Cryptocurrency Mining: A Beginner’s Guide to Generating Digital Assets

Cryptocurrency mining is a process that allows individuals to...

Inside Web3War v3.0: Ranked Matches, Real Rewards, and Skill2Earn Dynamics

Roll1ng Thund3rz has unveiled the latest version of its...

Diversifying Your Cryptocurrency Portfolio: Strategies for Beginner Investors

Diversification is a fundamental principle of investment management that...

Understanding Blockchain Technology: The Foundation of Cryptocurrency

Blockchain technology has emerged as the backbone of cryptocurrencies,...
Ethereum (ETH) $ 3,422.06
Bitcoin (BTC) $ 62,161.65
Tether (USDT) $ 1.00
XRP (XRP) $ 0.623042
BUSD (BUSD) $ 0.999652
Cardano (ADA) $ 0.722386
Dogecoin (DOGE) $ 0.139303
Litecoin (LTC) $ 91.15
Solana (SOL) $ 129.04