According to CoinDesk, the European Central Bank (ECB) is moving its digital euro project to a preparation phase, potentially paving the way for a future decision to issue a central bank digital currency (CBDC) for retail use in the European Union. The ECB initially planned to make a decision on whether to issue a CBDC at the end of a two-year investigation phase that began in 2021. However, the bank has faced criticism over its plans, with concerns raised about privacy issues and conspiracy theories.
The ECB will now begin its preparation phase in November, which is also set to last two years. During this time, the bank will finalize a digital euro rulebook, select providers to develop a CBDC platform, and conduct further testing. After the two-year period, the ECB's Governing Council will decide whether to move to the next stage of preparations, potentially leading to the issuance and roll-out of a digital euro.
A report published on Wednesday revealed that the ECB has designed a digital euro to be widely accessible to citizens and businesses through distribution by supervised intermediaries, such as banks. However, the bank clarified that moving to a preparation phase is not a decision to issue a digital euro. The decision will only be considered by the Governing Council once the European Union's legislative process has been completed. The European Commission published legislative proposals for a digital euro in June.