The European Central Bank (ECB) is actively engaged in preparing for the digital Euro.
The ECB is actively engaged in preparing for the introduction of a central bank digital currency (CBDC) within the Eurozone. Since January 2023, the ECB’s Rulebook Development Group, composed of representatives from advocacy groups and national central banks, has been working on the development of this complex set of regulations.
An Overview of the Rulebook
The group has published a report on the draft Rulebook, providing insights into the technical aspects of CBDC design. The Rulebook covers functional and operational models, high-level architecture, and the rights and obligations of participants under the preliminary legislation. Currently, the draft is under review by the group as a whole, with adjustments being considered based on feedback received.
The regulatory framework will be flexible enough to allow for future adjustments and will be updated based on the legislative process outcomes.
Preparation Phase and Call for Contributions
In November 2023, the ECB entered the preparation phase for the digital Euro. During this two-year period, the ECB will finalize the rules, conduct experiments, and gather feedback. A legislative framework is also being developed.
Additionally, the ECB has issued a call for contributions to work on individual components of the digital Euro, seeking service providers for tasks such as alias management, anti-fraud and risk mitigation, application and software development, offline services, and secure payment exchange.
The ECB asserts that no decision regarding the launch of a digital Euro will be made until preparations are completed and appropriate legislation is adopted.
