European Central Bank – A stocktake on the digital euro

The European Central Bank (ECB) is investigating, like other world central banks, the feasibility to use a central bank digital currency alongside the old familiar cash.

In October (2023) a detailed report has been released, it summarises all the major results of the last two years of research and tests in market and users studies, activities, safety, usability, social needs and adoption hypothesis.

Both technical and legislative requirements are taken in consideration in planning a new digital tool for strengthening European autonomy and enhancing the resilience of a public new payments system.

The 8 main sections of this report are:

1. Digital euro – an evolution of our money
   (how a digital euro would be beneficial)
2. How a digital euro would work from the perspective of end users
   (who would be the users and how / where the digital euro would work)
3. Making digital euro available: distribution via PSPs
   (the roles of payment service providers and the Eurosystem in delivering a digital euro)
4. Limitations as a means of investment
   (the reasons for limiting the use of a digital euro as a means of investment)
5. Supporting financial and digital inclusion
   (how a digital euro could be designed to meet the needs of vulnerable groups of people)
6. Privacy and data protection
   (how the Eurosystem’s involvement in user data processing can be minimised)
7. Collaboration with stakeholders and key inputs received in the project investigation phase
   (the process of exchanging views with market participants, civil society, and other EU institutions and policymakers)
8. Way forward

The complete report is available here.

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