ECB Starts Preparation Phase for Digital Euro Project

ECB Initiates Digital Euro Projects’s Preparation Phase

The ‘preparation phase’ of the digital euro project initiated by the European Central Bank (ECB) following two years of study. ECB will lay the groundwork for a potential central bank digital currency (CBDC) starting on November 1 but emphasised that its issuance is not confirmed. This two-year phase will include finalising digital currency rules and selecting potential issuers, followed by testing and experimentation based on user feedback. The final decision on issuing a digital euro will be made by the Governing Council after the European Union's legislative process concludes. The unveiling of a digital euro has privacy and regulatory implications.