The European Central Bank (ECB) has released its first progress report on the development of a central bank digital currency (CBDC). The report highlights privacy provisions, including pseudonymization, hashing functions, and encryption features to prevent tracking individuals by transaction. The ECB also outlined methods for conducting offline transactions directly between parties without a third-party intermediary. The report concluded with a timeline for the "Rulebook Development Group" to finalize the first draft of its technical and regulatory CBDC framework by the end of 2024. However, concerns about privacy issues and government overreach continue to grow within the crypto community.