Source: cryptoslate
Compiled by: Blockchain Knight
The European Central Bank (ECB) has released its second progress report on the development of the central bank digital currency (CBDC) for the digital euro, outlining the progress made in the preparatory phase and mentioning a prototype in 2025.
In the report, the European Central Bank reiterated its commitment to providing secure and efficient digital payment solutions that complement cash while ensuring monetary stability.
In addition, the digital euro is seen as a way to 'enhance the competitiveness of the euro in the future financial system.'
The digital euro aims to support the EU's digital economy by providing a reliable digital payment method that can be widely accepted by consumers, businesses, and governments across the region.
The European Central Bank's progress report mainly focuses on two aspects: technical and legal, as well as the ongoing public consultation process.
Over the past year, the European Central Bank has made significant progress in addressing the technical aspects of the digital euro, including improvements in infrastructure, security features, and integration with existing payment systems.
The European Central Bank has also been closely collaborating with stakeholders, including financial institutions, academia, and policymakers, to ensure that the digital euro can seamlessly integrate into the current monetary and economic framework.
The report also emphasizes the need to ensure privacy protection and compliance with EU regulations such as the General Data Protection Regulation (GDPR) when designing the digital euro.
Additionally, the document also presents the latest updates on the ongoing public consultation, which has garnered significant interest from citizens, businesses, and institutions.
Currently, the European Central Bank has received feedback on a wide range of issues, including how the digital euro can enhance payment efficiency, potential risks to financial stability, and concerns regarding privacy and cybersecurity.
The results of the consultation are expected to play a crucial role in the development of the next phase of the digital euro project.
The European Central Bank emphasizes that public opinion is crucial in determining the final design and implementation of the digital euro.
Looking ahead, the European Central Bank is focusing on the preparatory work for the next phase of the digital euro project, which will involve more detailed design work and pilot testing.
The central bank plans to begin testing the prototype of the digital euro in 2025. Based on the results of the current development phase, the currency may be launched in the subsequent years.
Although the European Central Bank has not yet established a clear timetable for the launch of the digital euro, it will still strive to ensure that the rollout of the digital euro supports the stability and security of the European financial system.
