Digital Euro is coming soon? ECB announces prototype testing in 2025

Source: Blockchain Knight

The European Central Bank (ECB) has published its second progress report on the development of a digital euro central bank digital currency (CBDC), outlining progress in the preparation phase and mentioning a prototype for 2025.

In the report, the ECB reaffirms its commitment to providing secure and efficient digital payment solutions, complementing 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 ECB's progress report focuses on two main areas: technical and legal, as well as the ongoing public consultation process.

Over the past year, the ECB has made great progress in addressing the technical aspects of the digital euro, including improvements in infrastructure, security features, and integration with existing payment systems.

The ECB has also been working closely with stakeholders, including financial institutions, academia and policymakers, to ensure that the digital euro can fit seamlessly into the current monetary and economic framework.

The report also emphasizes the importance of ensuring privacy protection and compliance with EU regulations such as the General Data Protection Regulation (GDPR) when designing the digital euro.

In addition, the document provides an update on the ongoing public consultation, which has attracted great interest from citizens, businesses and institutions.

Currently, the ECB has received feedback on a wide range of issues, including how a digital euro can improve payment efficiency, potential risks to financial stability, and concerns about 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 ECB emphasizes that public opinion is crucial in determining the final design and implementation of the digital euro.

Looking ahead, the ECB is focusing on preparing for the next phase of the digital euro project, which will involve more detailed design work and pilot testing.

The central bank plans to start testing a prototype of the digital euro in 2025. Depending on the results of the current research and development phase, the currency could be launched in the following years.

While the ECB has not yet set a clear timetable for the launch of the digital euro, it will remain committed to ensuring that the launch of the digital euro supports the stability and security of the European financial system.