The European Central Bank (ECB) has unveiled its second progress report on the digital euro's preparatory phase, marking the halfway point in its development. The report delves into holding limits for the central bank digital currency (CBDC) and the harmonization of laws across Europe. A key issue is the holding limits, with a "reverse waterfall" method being considered to manage excess digital euros. The ECB emphasizes the need for European competition in financial services and hints at enhanced privacy features. The next progress report is due in mid-2025, with a potential launch decision in October 2025.