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The European Central Bank (ECB) has intensified efforts on the development of the digital euro, responding to growing geopolitical concerns and renewed pressure from EU leaders to accelerate progress on a sovereign digital currency.
In its third progress report released during the preparation phase of the Central Bank Digital Currency (CBDC), the ECB revealed a sharpened focus on strategic autonomy in payments, citing the need to reduce the continent’s dependency on dominant foreign payment networks such as Visa and Mastercard.
The urgency comes amid rising geopolitical tensions, including uncertainties around a potential second Trump presidency in the United States. European leaders, in a March statement, emphasized that accelerating work on a digital euro is crucial for enhancing the EU’s economic security, promoting a resilient and competitive payment ecosystem, and reinforcing the global standing of the euro.
“We are pleased to see that our efforts remain on track as we continue to deliver on the mandate from EU leaders,” said ECB Executive Board Member Piero Cipollone. “Given the current geopolitical and economic landscape, we fully support the need for an ambitious pace in legislative and technical work on the digital euro.”
As part of ongoing preparatory activities, the ECB has launched an innovation platform involving around 70 financial sector participants. These stakeholders are conducting technical trials focused on conditional payments and exploring a range of potential use cases to seamlessly integrate the digital euro into the broader financial infrastructure.
In a bid to ensure inclusivity and accessibility, the ECB is also engaging directly with key user groups—such as small merchants, low-income earners, and underserved communities—through focus groups, interviews, and collaborations with consumer advocacy organisations. Insights from these interactions are being used to shape a digital euro that reflects the needs and realities of everyday Europeans.
The ECB’s next milestone is expected to include further pilot implementations and legislative alignment with EU institutions as the initiative continues to gain momentum.
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