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The European Union is heading into the \u201cpreparation phase\u201d of its digital euro project.<\/p>\n
According to the Governing Council of the European Central Bank, the next phase will start on Nov. 1 and will last two years. The ECB first launched an investigation into the digital euro back in 2021.<\/p>\n
\u201cIt will involve finalizing the digital euro rulebook and selecting providers that could develop a digital euro platform and infrastructure. It will also include testing and experimentation to develop a digital euro that meets both the Eurosystem\u2019s requirements and user needs, for example in terms of user experience, privacy, financial inclusion and environmental footprint,\u201d the ECB wrote<\/a>.<\/p>\n Digital privacy is a priority for the digital euro, with the Eurosystem hiding personal data and aiming to \u201cachieve a cash-like level of privacy for offline payments.\u201d<\/p>\n Read more:<\/strong> European Union\u2019s digital euro may run on UTXO<\/a><\/p>\n The Eurosystem will also plan<\/a> to maintain the ledger or \u201croot of title\u201d of the money being issued as well as the settlement of transactions of the digital euro. The Eurosystem, therefore, would \u201ctake responsibility for recoding digital euro liabilities in its own books.\u201d<\/p>\n \u201cWe envisage a digital euro as a digital form of cash that can be used for all digital payments, free of charge, and that meets the highest privacy standards. It would coexist alongside physical cash, which will always be available, leaving no one behind,\u201d ECB President Christine Lagarde said.\u00a0<\/p>\n Read more:<\/strong> European Central Bank launches 24-month investigation into digital euro<\/a><\/p>\n In the previous \u2014 or current until November \u2014 phase, the ECB ran tests and \u201cconcluded that it is possible to smoothly integrate a digital euro into the existing payment landscape, while still leaving scope for the market to use innovative features and technologies when distributing a digital euro.\u201d<\/p>\n While the project moves into its next phase, the ECB noted that it is \u201cclosely\u201d following legislation and a decision on a digital euro will be considered \u201conly after the legislative act is adopted.\u201d<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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