ECB deliberates on imposing constraints for digital euro transactions

The European Central Bank (ECB) has published a progress report on the preparation phase of the digital euro, the central bank digital currency (CBDC) of the Eurozone. The report highlights the significant strides made in the development of the digital euro, with the Eurosystem having started a two-year phase for its preparation in November 2023.

The Eurosystem, responsible for the digital euro preparation, is addressing user design research and design issues, including holding limits. Parts of the work for the digital euro are being outsourced to ensure a comprehensive and efficient approach.

The Rulebook for the digital euro is being developed, with the progress report emphasising its importance in establishing the legal framework for the digital currency. The launch of the CBDC is subject to the passage of regulations, which will be coordinated with the European Union institutions responsible for legislation.

The ECB's Governing Council is expected to decide on the launch of the CBDC at the end of 2025, if the preparatory phase is successfully completed and the laws are in place. The decision will mark a significant milestone in the adoption of digital currencies within the Eurozone.

The digital euro preparation phase has been meticulous, with the ECB publishing regular updates to keep the public informed. The progress report published by the ECB underscores the commitment of the European Central Bank to a secure, efficient, and user-friendly digital currency for the Eurozone.

While the full article, exclusive industry analysis, and early access to legislative updates are available for pro subscribers, the report provides a clear and accessible overview of the digital euro's development for the general public. The digital euro promises to bring the Eurozone into the digital age, offering a secure and innovative means of transaction. As the preparatory phase continues, the Eurozone moves one step closer to embracing the digital future.