The European Central Bank (ECB) has released its second progress report on the digital euro preparation phase, which began on 1 November 2023. This phase aims to establish the foundations for a potential digital euro and has made significant strides since the initial report.
One of the key developments has been the revision of the digital euro scheme rulebook, designed to standardise digital euro payments across the eurozone. Feedback from the Rulebook Development Group—comprising consumers, retailers, and payment service providers—has shaped the updated draft. Since May 2024, additional contributions from seven dedicated workstreams have focused on critical areas like user experience standards and risk management.
In tandem, the ECB has been working to identify technology providers for digital euro components. Following a call for applications earlier this year, selected bidders have been invited to tender, with results expected to be published in 2025. Alongside this, the ECB has initiated user research, including surveys and interviews targeting specific groups such as small businesses and vulnerable consumers, to better understand their preferences. Insights from these studies will inform the digital euro’s development, with findings set to be shared in mid-2025.
The ECB is also partnering with stakeholders—ranging from fintech firms to academic institutions—to explore innovative uses for the digital euro, such as conditional payments that are executed automatically when predefined conditions are met. Results from these innovation partnerships are anticipated in July 2025.
A further focus is the establishment of a methodology for setting holding limits on the digital euro to balance user needs with financial stability and monetary policy goals. The ECB is collaborating with market participants and using granular bank data to refine this approach, with initial analysis expected in 2025.
The digital euro project remains a European initiative designed to benefit citizens across the eurozone. The ECB is committed to engaging with stakeholders, fostering collaboration, and maintaining transparency throughout the process. A decision on the issuance of a digital euro will be made by the ECB’s Governing Council once the necessary legislation is in place.
