Digital Euro Implementation

The concept of a digital euro is being explored, potentially providing a digital payment option accessible across the euro area. Functioning securely and with user-friendliness akin to physical cash, a digital euro would be issued by the European Central Bank (ECB) as central bank money, distinct from private currencies. Using a card or a mobile app, transactions with digital euro would be feasible.

While comprehensive details of the final proposal are not yet available due to ongoing investigations, considerable contemplation has been directed towards the benefits and drawbacks of a digital euro. One prevailing aspect is the emphasis on accessibility, robustness, safety, efficiency, and compliance with legal frameworks. Moreover, stringent privacy standards are to be upheld.

The exploration phase commenced in October 2021 and is projected to span approximately two years, concluding in October 2023. This phase encompasses deliberations on the design, distribution, and potential market implications of a digital euro. Based on these evaluations, a decision will be made on whether to proceed with the actual development process.

The European Central Bank has the responsibility of ensuring the fundamental aspects of the digital euro, a potential complement to physical currency, with plans for its potential launch as early as 2027.

The Presentation about the Digital Euro of the ECB from June 2023 can be found here:

https://www.ecb.europa.eu/paym/digital_euro/investigation/governance/shared/files/ecb.degov230615_Updateonthedigitaleuro.en.pdf?9af2064f07cbcf772dbdfcb66634f500

The current status of the project can be followed here: https://www.ecb.europa.eu/paym/digital_euro/html/index.en.html#pubs