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The European Central Bank (ECB) is drafting a new digital asset scheme rulebook as it lays the groundwork for the introduction of a digital euro.
The rulebook, which will address topics such as user experience requirements, brand rules, implementation specifications and risk management, is being coordinated through a Rulebook Development Group (RDG) and monitored via workstreams.
The RDG is made up of representatives of organisations on both the supply and demand sides of the European retail payments market, as well as observers from EU financial institutions. The workstreams comprise around 50 participants from more than 30 organisations.
The workstreams have focused on creating a methodology to develop minimum user experience requirements.
They have reviewed existing market standards and certifications for the financial sector so they can be reused for the digital euro, and developed risk management rules to ensure strong operational resilience, with an initial focus on fraud and operational risks.
The ECB has also hosted sessions with industry experts on topics such as transaction latency and dispute management to prepare for the currency.
Inclusive currency
In its third progress report on the digital euro, the ECB said it has launched an innovation platform.
Along with around 70 market participants, it has tested features such as conditional payments and conducted interviews and focus groups with under-represented groups with the aim of ensuring the currency is inclusive from the outset.
The central bank said it is working on an accessibility strategy for the digital euro app to ensure that it is usable by all, including people with physical disabilities, low digital skills or learning impairments.
It noted that with the increasing digitisation of retail payments, Europeans remain heavily reliant on foreign providers such as international card schemes and big tech.
This creates vulnerabilities in Europe’s resilience, economic competitiveness and monetary sovereignty, and increases the risk of fragmentation due to the development of different private payment methods that cannot be seamlessly used across countries.
“The digital euro aims to tackle these challenges by providing a single way to pay across the euro area, much like physical cash,” the ECB said.
“It would also provide an infrastructure that could help national payment schemes scale up their services to the European level. As a digital complement to cash, the digital euro would support financial inclusion, reduce dependency on foreign payment systems and foster a unified European payments ecosystem, ensuring that Europe retains its autonomy in a rapidly evolving global environment.”
Steady progress
The report indicates that progress on a European digital currency continues at a steady pace, in contrast to the US, where President Trump has firmly ruled out any central bank digital currency (CBDC).
CBDCs are increasingly moving into the financial mainstream, with the EU one of a number of jurisdictions, including Australia, Israel, and Papua New Guinea, that are edging towards the adoption of digital currencies in various forms.
A European digital currency has acquired increasing urgency for the ECB as concerns about payments sovereignty have heightened. However, the ECB still has to convert doubters, including many in the payments industry, to its plans.
Claims that a digital euro would benefit banks have met with scepticism among some EU lawmakers, and European consumers have not shown any great enthusiasm for the project.
As covered by Vixio, an ECB study published in March 2025 found that most Europeans have little interest in using a potential digital euro, should the central bank commit to issuing one.
Nevertheless, it is pressing ahead with its development of a CBDC, and continuing to highlight the potential benefits.
