Source: cryptoslate

Compiled by Blockchain Knight

The European Central Bank (ECB) has published its second progress report on the development of Central Bank Digital Money (CBDC) for the digital euro, outlining the progress made in the preparatory phase and mentioning a prototype by 2025.

In its report, the European Central Bank reiterated its commitment to providing a secure and efficient digital payment solution, supplementing cash while ensuring currency stability.

In addition, the digital euro is seen as a way to enhance the competitiveness of the euro in the future financial system.

Digital Euro aims to support the digital economy of the European Union by providing a reliable digital payment method that can be widely accepted by consumers, businesses, and governments across the region. The progress report of the European Central Bank mainly focuses on two aspects: technology and law, as well as the ongoing public consultation process.

In the past year, the Central Bank in Europe has made significant progress in addressing the technical aspects of the digital euro, including improvements in infrastructure, security features, and integration with existing payment systems.

The European Central Bank has also been closely collaborating with stakeholders including Financial Institution, academia, and policymakers to ensure that digital euro can seamlessly integrate into the current monetary and economic framework.

The report also emphasizes the need to ensure privacy protection and compliance with EU regulations such as the General Data Protection Regulation (GDPR) when designing the digital euro.

In addition, the document also introduces the latest situation of the ongoing public consultation, which has aroused great interest among citizens, enterprises, and institutions.

Currently, the European Central Bank has received feedback on a wide range of issues, including how digital euro can improve payment efficiency, potential risks to financial stability, and concerns about privacy and cybersecurity.

The expected consultation result will play a crucial role in the next stage of the digital euro project.

The European Central Bank emphasizes that public opinion is crucial in determining the final design and implementation of the digital euro.

Looking ahead, the European Central Bank is focusing on preparing for the next phase of the digital euro project, which will involve more detailed design work and pilot testing.

The Central Bank plans to start testing the prototype of the digital euro in 2025. Based on the current research and development phase, the currency may be launched in the following years.

Although the European Central Bank has not yet determined a specific timetable for the launch of the digital euro, it will still be committed to ensuring that the launch of the digital euro can support the stability and security of the European financial system.