The European Central Bank (ECB) has released its second progress report regarding the preparation phase of a digital euro, setting the groundwork for the possible issuance of this Central Bank Digital Currency (CBDC).
Since the release of the initial progress report, the ECB has made updates to its digital euro scheme rulebook to standardize digital euro payments across the euro area. Additionally, the central bank has finalized a call for applications to select potential providers of digital euro components and related services. Selected bidders have now been invited to submit tenders, with final outcomes expected next year.
New user research and experimentation activities have also commenced to gather insights into user preferences, which will help inform decision-making. This research will focus on specific target groups, including small merchants and vulnerable consumers, with results slated for publication in mid-2025.
Moreover, the ECB is collaborating with key stakeholders—such as merchants, payment service providers, fintech firms, and universities—to establish innovation partnerships aimed at testing conditional payments and exploring other potential use cases for a digital euro.
In addition, the ECB is coordinating with experts from the national central banks of the Eurosystem and national authorities to create a methodology for determining digital euro holding limits. This work will evaluate various factors in the calibration process and propose a testing methodology that will be analyzed in 2025.
A decision on whether to proceed to the next phase of preparations will not be made until the end of 2025.