European Central Bank Releases Key Updates on Digital Euro Preparatory Work
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 […]
European Central Bank Advances Digital Euro Project with First Progress Report
The European Central Bank (ECB) recently published its first progress report on the digital euro, which is currently in its two-year preparation phase set to conclude by October 2025. The initiative aims to adapt central bank money to modern payment preferences and trends, enhancing Europe’s monetary sovereignty by providing a secure, accessible retail payment alternative […]
Navigating the Trilemma: Central Banks, Digital Currencies, and the Risk of Bank Runs
The European Central Bank (ECB) has published an economics paper exploring the potential risks associated with the implementation of a Central Bank Digital Currency (CBDC), particularly focusing on the possibility of a ‘bank run’ scenario. Central banks, according to the paper, face a unique trilemma, different from the blockchain trilemma of security, scalability, and decentralization. […]
European Central Bank Advances Digital Euro Project to Preparation Phase
The European Central Bank (ECB) is gearing up to bolster the euro’s digital future. In an announcement made today, the ECB disclosed its decision to transition into the next stage of the digital euro project, marking the commencement of the preparation phase. This development comes on the heels of an extensive investigation phase that began […]
Call for expressions of interest in participation in the digital euro scheme Rulebook Development Group
Source: ECB The ECB/Eurosystem is inviting experienced experts in the field of payments/finance to express their interest in contributing to the drafting of a rulebook for a digital euro scheme. Following the decision of the ECB’s Governing Council to launch the investigation phase of the digital euro project, the Eurosystem has explored various options for […]
ECB publishes second progress report on the digital euro investigation phase
Source: ECB The ECB has published the second progress report on the investigation phase of a digital euro. It outlines the developments made since the first progress report, which was published in September 2022. The report details a second set of design and distribution options that were recently endorsed by the Governing Council and describes the roles of the […]
Demystifying wholesale central bank digital currency
Source: ECB. Speech by Fabio Panetta, Member of the Executive Board of the ECB, at the Symposium on “Payments and Securities Settlement in Europe – today and tomorrow” hosted by the Deutsche Bundesbank Let me first thank the Deutsche Bundesbank, and President Nagel in particular, for inviting me to speak at today’s symposium. I would […]
Working Paper Series: The economics of central bank digital currency (CBDC)
Original Source: European Central Bank (ECB) Abstract This paper provides a structured overview of the burgeoning literature on the economics of CBDC. We document the economic forces that shape the rise of digital money and review motives for the issuance of CBDC. We then study the implications for the financial system and discuss of a […]
Working Paper Series: Towards the holy grail of cross-border payments
Original Source: ECB Abstract The holy grail of cross-border payments is a solution allowing cross-border payments to be immediate, cheap, universal, and settled in a secure settlement medium. The search for such a solution is as old as international commerce and the implied need to pay. This paper describes current visions how to eventually find […]
Stablecoins’ role in crypto and beyond: functions, risks and policy
Original Source: European Central Bank (ECB) Prepared by Mitsu Adachi, Pedro Bento Pereira Da Silva, Alexandra Born, Massimo Cappuccio, Stephanie Czák-Ludwig, Isabella Gschossmann, Georg Paula, Antonella Pellicani, Sarah-Maria Philipps, Mirjam Plooij, Ines Rossteuscher and Pierfrancesco Zeoli[1] Stablecoins are in the spotlight due to their rapid growth, increasing global use cases and potential financial risk contagion […]
