"Fortunately the ECB acted early because even the previous phase had taken years."
After the investigation phase that took two years was completed, the Governing Council of the European Central Bank (ECB) on October 18, 2023 without wasting time decided to move to the next phase for the digital euro project it wants to implement.
The preparatory stage which will start on 1 November 2023 will involve finalizing the digital euro rulebook, selecting technology providers including testing.
After the preparation phase ends at the end of 2025, the ECB will decide whether to move forward with issuing a CBDC following a decision that can only be made once the EU legislative process is complete.
This is because the EU legislative body will decide whether the digital euro will be launched or not, said EU Circle Strategy and Policy Director Patrick Hansen, adding that the legislative process is ongoing and discussions about the EU Commission have already begun.
However, it may take some time until the EU elections that will take place in June 2024.
The digital euro is proposed to be a form of digital cash that not only allows private offline payments but is also widely accessible, free and offers high privacy standards.
In addition, users can also access digital euro services through banks or the "Eurosystem" application, while those who do not have a bank account can use cards from public entities such as post offices.
Pleased to be informed that the Bank for International Settlements (BIS) and the central banks of France, Singapore and Switzerland earlier this month have announced their success in completing a new CBDC initiative called the Mariana Project.
