- The European Central Bank (ECB) is entering the “preparation phase” of its digital euro project on November 1, 2023.
- This phase involves selecting providers for the digital euro’s supporting platform and infrastructure and finalizing regulations and a rulebook.
- The preparation phase is expected to last for two years.
- The ECB will also test and experiment with the digital euro to ensure it meets Eurosystem and end-user requirements, with a focus on privacy, financial inclusion, and environmental impact.
- The outcome of this phase will determine whether the ECB proceeds to the next stage, which may involve full-scale issuance of the digital euro.
- It’s important to note that the preparation phase is not a final decision on whether to issue a digital euro.
- ECB President, Christine Lagarde, envisions the digital euro as a free, private, and widely accepted digital form of cash that coexists with physical currency.
- Privacy is a core focus of the project, and the ECB aims to dispel privacy concerns and conspiracy theories.
