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The European Central Bank (ECB) has published its second progress report on the digital euro preparation phase, which began in November 2023.
The ECB has updated its digital euro scheme rulebook, integrating feedback from consumers, retailers and payment service providers, and has said that a revised draft focusing on user experience and risk management will be completed in early 2025.
User-focused research is ongoing, with the central bank examining preferences for holding limits and the needs of small merchants and vulnerable groups. The results will be published in mid-2025, alongside findings from innovation partnerships exploring advanced use cases, such as conditional payments.
The ECB has also shortlisted providers for digital euro components, with procurement outcomes expected in 2025.
This is happening in conjunction with discussions within the European Retail Payments Board aimed at identifying competition and business models for payment service providers (PSPs) that maximise the benefits and minimise the risks of the digital euro.
The ECB’s Governing Council will decide on issuing a digital euro only after the necessary legislation is adopted by co-legislators in the EU.
The bank plans to release a final progress report on the preparation phase in mid-2025.
