Source: Blockchain Knight

The European Central Bank (ECB) has published its second progress report on the development of a digital Euro Central Bank Digital Currency (CBDC), outlining progress in the preparation phase and A 2025 prototype was mentioned.

In the report, the European Central Bank reiterated its commitment to providing safe and efficient digital payment solutions to supplement cash while ensuring monetary stability.

In addition, the digital euro is seen as a way to "enhance the competitiveness of the euro in the future financial system."

The Digital Euro aims to support the EU’s digital economy by providing a reliable digital payment method that is widely accepted by consumers, businesses and businesses across the region.

The ECB’s progress report mainly focuses on two aspects: technical and legal, and the ongoing public consultation process.

Over the past year, the ECB has made great strides in addressing the technical aspects of a digital euro, including improvements in infrastructure, security features, and integration with existing payment systems.

The European Central Bank has also been working closely with stakeholders including financial institutions, academics and policymakers to ensure that the digital euro can be seamlessly integrated into the current monetary and economic framework.

The report also emphasizes the need to ensure privacy protection and compliance with EU regulations such as the General Data Protection Regulation (GDPR) when designing a digital euro.

In addition, the document provides an update on the ongoing public consultation, which has generated significant interest from citizens, businesses and institutions.

Currently, the ECB has received feedback on a wide range of issues, including how a digital euro could improve the efficiency of payments, potential risks to financial stability, and concerns about privacy and cybersecurity.

The results of the consultation are expected to play a crucial role in the development of the next phase of the digital euro project.

The European Central Bank emphasized that public opinion is crucial in determining the final design and implementation of the digital euro.

Looking ahead, the ECB is focusing on preparations for the next phase of the digital euro project, which will involve more detailed design work and pilot testing.

The central bank plans to start testing a prototype of the digital euro in 2025. Depending on the results of the current development phase, the currency may be launched in subsequent years.

Although the European Central Bank has not yet set a clear timetable for the launch of the digital euro, it remains committed to ensuring that the launch of the digital euro can support the stability and security of the European financial system.