The digital euro project team, compiled by the European Central Bank (ECB), has documented its progress and plans to integrate the Central Bank Digital Currency (CBDC) in the wider market.
It was highlighted that ‘multiple’ use cases are required to correctly address the varying end-user needs when it comes to adopting a digital euro, as diverse payment behaviours and preferences continue to take shape.
The ECB referenced a staggered approach to integrating the CBDC that would contribute towards a smooth user experience and reduce complexities when it comes to the implementation process.
This is the latest development into a European CBDC since the EU Governing Council launched its investigation into the digital euro in July, 2021.
Previous developments over the past year has seen design operations, online/offline functionality, accessibility, and user requirements all be considered.
Ultimately, the European board has prioritised “maximising the balance” between market relevance, consideration of Eurosystem’s policy considerations, and the technical and implementation aspects towards a potential digital euro.
Currently still in its investigation phase, the digital currency has already had its rollout phase discussed within its latest development.
The ECB has considered two product rollout strategies; Person-to-Person (P2P) /e-commerce, and Point-of-Sale (PoS)/G2X. Whilst both strategies are working on specifications and procurement, rulebook development is also believed to be still in the works for a P2P/e-commerce release.
The Eurosystem will finalise its views in Q2 ’23 to its committee on its consultation on the digital currency, which will include external stakeholders and internal analysis.
Integration into an implementation plan for the possible realisation phase will be brought to the Governing Council in Q3 ‘23 for decision.