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The European Central Bank (ECB) has released its second progress report on the digital euro project, highlighting advancements made since the initial report. Key updates include revisions to the digital euro scheme rulebook, designed to harmonize digital euro payments across the eurozone, and the completion of a call for applications to identify potential providers of digital euro components and services. Selected bidders have been invited to tender, with results expected to be finalized in 2024.
The ECB has also launched new user research and experimentation activities to better understand user preferences and inform future decisions. These efforts will focus on specific groups, including small merchants and vulnerable consumers, with findings to be published by mid-2025.
To foster innovation, the ECB is collaborating with merchants, payment service providers, fintech companies, and academic institutions through innovation partnerships. These partnerships will test conditional payments and explore other potential use cases for the digital euro.
In parallel, the ECB is working with experts from Eurosystem national central banks and national authorities to develop a methodology for setting holding limits for the digital euro. This framework will guide the calibration of holding limits and undergo a preliminary analysis in 2025.
A decision on progressing to the next phase of the digital euro’s development is expected by the end of 2025, as the ECB continues to refine the design and framework for a central bank digital currency tailored to the euro area.
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