The European Central Bank (ECB) is intensifying efforts on the digital euro in response to the “ambitious pace” established by EU leaders and the growing urgency stemming from geopolitical tensions, including the more confrontational stance of the United States.
In its third progress report on the CBDC preparation phase, the ECB notes that since the last update in December, there has been mounting pressure from European leaders to decrease reliance on Visa and Mastercard.
In March, a statement from leaders emphasized the importance of accelerating progress on a digital euro to foster a competitive and resilient European payment system, enhance economic security, and bolster the euro’s international role.
ECB executive board member Piero Cipollone remarked, “We are pleased to see that our efforts remain on track as we continue to respond to EU leaders’ request to expedite progress on the digital euro. Given today’s geopolitical and economic challenges, we welcome a swift pace for legislative work.”
Recently, the ECB has initiated an innovation platform involving around 70 market participants. This platform focuses on testing features like conditional payments and exploring ideas and use cases for integrating the digital euro into the financial ecosystem.
Additionally, the ECB is collaborating with small merchants, vulnerable consumers, and underrepresented groups through focus groups and interviews to ensure the design of the digital euro is inclusive and accessible.