European Central Bank launches two-year preparation phase for digital euro project

The Governing Council of the European Central Bank announced the launch of a new phase of the digital euro project: the "preparatory phase". This decision follows an investigation phase launched by the Eurosystem in October 2021 to examine how a digital euro would be designed and distributed. The digital euro will offer a wide range of payment options, support online and offline payments, and will provide the highest level of privacy protection. The project's preparation phase will begin on November 1, 2023, and last two years, including final rulemaking and infrastructure development. The ECB will continue to work with the public and stakeholders to ensure that the digital euro meets user needs. The eventual issuance of a digital euro will depend on the European Union’s legislative process, subject to Council review. The European Central Bank emphasized that the digital euro will coexist with physical cash and will become an important part of future digital payments, promoting innovation and competition in the European payment industry while protecting user privacy.