After a two-year research program, the ECB Governing Council has greenlit the preparation phase for the digital euro project. This move signals progress in the development of a European CBDC, pending legislative approval.
The European Central Bank (ECB) has completed its two-year exploration of central bank digital currencies (CBDCs) and is poised for the next step.
The ECB Governing Council announced its decision to move into the preparation phase for the digital euro on October 18. This phase, commencing on November 1 and spanning two years, will encompass finalizing the digital euro rulebook, selecting technology providers, and conducting tests.
Our Governing Council has decided to move to the next phase of the digital euro project.
In November 2023 we will start laying the foundation for the possible issuance of a digital euro. A decision on issuing a digital euro will come at a later stage.https://t.co/xuKklame0U pic.twitter.com/Nn0Z8RggVn
— European Central Bank (@ecb) October 18, 2023
By the end of 2025, the ECB will determine whether to proceed with a CBDC issuance, contingent on the EU legislative process.
Patrick Hansen, Circle’s Director of EU Strategy and Policy, emphasized that EU legislative bodies, including the EU Parliament and the Council of the EU, will ultimately decide on the digital euro’s fate.
A legislative process is already in motion, and a vote on the topic may occur after the EU elections in June 2024.
The proposed digital euro is designed for offline, private payments, accessible to all, and prioritizes privacy. It will coexist with physical cash, ensuring universal access.