Development of digital euro, decision on whether to launch expected in autumn

The European Central Bank (ECB) has released a report on the digital euro, detailing its role, progress, and future plans. It states that the digital euro is currently in the investigation phase, and the introduction and design direction still require political discussions.

The Role of Digital Euro

While cash remains an important option, the trend of electronic payments has been increasing year by year. The digital euro, as a currency anchor, will protect the public's opportunity to obtain central bank money in the digital world through the widespread use by potential users. The extensive use of the euro area as a single nation-state in Europe is a basic principle. The ECB hopes to strengthen the strategic autonomy of the euro area by enhancing the independence of the euro area from non-European payment solutions and by increasing economic efficiency through curbing market abuse.

Progress of Digital Euro

The report also lists the progress of the digital euro, including mechanisms for online/offline payments, settlement modes, privacy, and fund transfer completed in 2022. Use cases now include e-commerce, payments to government agencies, peer-to-peer transactions, and physical stores. In the first quarter of 2023, trials for additional services/features will be conducted, focusing on market research, studies of specific demographics, and the testing of the digital euro prototype. These will be completed and reviewed in the second quarter of 2023.

All research will be concluded by the second quarter of 2023, and a decision on the possibility of initiating the implementation phase will be made in the fall.