Key Takeaways
- The ECB reports continued progress in developing the digital euro, a central bank digital currency (CBDC) for the eurozone.
- Testing for the digital euro is expected to end by October 2025, with a possible launch after that date.
The European Central Bank sees progress in digital euro development as the central bank digital currency project advances through its preparation phase.
The ECB, the central banking institution for the 20 eurozone countries, entered the digital euro preparation phase in 2023. Testing phases are expected to conclude by October 2025.
The proposed CBDC would serve as a digital form of cash issued and backed by the ECB to complement physical euros. If introduced, the digital euro could handle up to €1 trillion in annual retail payments across the eurozone’s 500 million+ population.
The ECB has called for EU governments to accelerate legislation establishing legal frameworks for CBDCs, aiming for a potential rollout by late 2025. The push reflects efforts to ensure regulatory control over digital payments and compete with private stablecoins.
The digital euro project aligns with global trends as over 100 countries explore or pilot CBDCs. China’s digital yuan already serves millions of users, demonstrating how central banks are advancing digital currencies to modernize financial systems.
Source: https://cryptobriefing.com/ecb-sees-progress-in-digital-euro-development/