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Evolution of
the ECB's digital currency preparation phase
The European Central Bank (ECB) announced today that it is moving forward with the development of the Central Bank's (CBDC) digital currency for the eurozone.
ECB President
Christine Lagarde tweeted:
"We need to prepare our currency for the future." "Although we have not yet decided whether to export the digital euro, we are preparing."
The ECB said it had designed a digital euro that would serve as "a digital form of cash that can be used for all digital payments, coexisting with physical cash, leaving no one behind."
The Central
Bank has completed the initial
"investigation phase" for two years and will now enter a two-year preparation phase to build infrastructure and finalize potential digital euro design.
This phase will involve selecting technology providers
testing different options
and continuing to interact with the public and stakeholders.
After the preparation phase
the ECB's governing body will decide whether
or not to formally issue the digital euro.
The bank said
the digital euro would provide the highest level of privacy and allow offline transactions, unlike current digital payment options.
The European Central Bank stressed that the digital euro
would not replace but complement physical cash.
The bank said its goal is to ensure that the euro is ready
for the future as digital payments become more common.
The Central Bank plans to
continue working closely with EU policymakers as it progresses to the next phase of the potential development of the Central Bank's digital currency (CBDC).