According to Cointelegraph, the European Central Bank released its second progress report on the preparation stage for the issuance of the digital euro, discussing the holding limit and legal coordination issues of the central bank's digital currency.
The report notes that the development of the digital euro rulebook is midway through, with seven working groups continuing to advance its development with the goal of unifying national laws to ensure universal standards.
Research is continuing to identify potential users’ needs, including user preferences for holding limits, which Politico reported became a point of contention between the ECB and national central banks.
The report also discusses competition between European and non-European service providers in financial markets, stressing the need for more technological services such as wallets. A digital euro would help regional and domestic European initiatives to expand payment services.
The ECB will continue to select technical service providers and communicate with the public and other stakeholders. The next digital euro progress report will be published in the second quarter of 2025, and the ECB Governing Council may decide on the launch of the ECB digital currency in October 2025.