The European Central Bank (ECB) has advanced to the next phase of its digital euro project, laying the groundwork for its potential issuance. The decision comes after a two-year investigation into the design and distribution of the digital euro.

The preparation phase, starting in November 2023 and lasting for two years, involves finalizing a rulebook and selecting providers for the currency’s platform and infrastructure.

This phase will focus on developing a digital euro that meets both the Eurosystem’s requirements and user needs.

However, it’s essential to note that this development doesn’t signify the immediate issuance of a digital euro. The ECB is proceeding with caution to ensure that it meets the highest privacy standards and coexists with physical cash.

ECB President Christine Lagarde emphasized the importance of preparing the currency for the future, envisioning a digital euro as a form of digital cash for all digital payments.

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