Launched on 1 November 2023, this phase focuses on establishing the framework for a potential digital currency across the euro area. Since the first report, the ECB has revised the digital euro scheme rulebook to standardise payments across the eurozone.
This update followed an interim review involving the Rulebook Development Group, which includes representatives of consumers, retailers, and payment service providers. Seven new workstreams, introduced in May 2024, contributed to the revisions by addressing areas such as user experience standards and risk management protocols.
The ECB also finished its call for applications to identify potential providers for digital euro components. After inviting selected bidders to submit tenders, the bank plans to announce the results in 2025.
To align the digital euro’s design with user preferences, the ECB has initiated new research, including surveys and interviews targeting groups such as small merchants and vulnerable consumers. Findings from these efforts will be made public by mid-2025.
Additionally, the ECB is forming partnerships with merchants, fintechs, payment providers, and academic institutions to test innovative features such as conditional payments, which are automated transactions triggered by predefined conditions. A report summarising these tests is expected in July 2025.
The ECB is collaborating with Eurosystem national central banks and authorities to create a methodology for setting limits on digital euro holdings. This work involves consultations with market participants and analysis of bank data to ensure that user experience considerations align with monetary policy and financial stability. Preliminary results are expected in 2025.
The digital euro project continues to engage a broad range of stakeholders, from policymakers and financial institutions to the general public. The ECB emphasises transparency and plans to maintain regular communication as legislative deliberations progress.
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