The European Central Bank (ECB) has released its third progress report on the preparation phase of a digital euro, which began on 1 November 2023.

This phase is focused on laying the groundwork for a potential digital euro issuance.

Since the second progress report, the ECB has made further progress on the draft rulebook for the digital euro scheme.

The rulebook is intended to standardise digital euro payments across the euro area and provide a modern and user-centred experience.

Input from the Rulebook Development Group, which includes representatives from the European retail payments market, has contributed to improvements in the document.

Additional insights were provided by ECB workstreams involving around 50 participants from over 30 organisations, as well as expert sessions on topics such as risk and dispute management.

In parallel, the ECB has increased its efforts in experimentation and user research to ensure the digital euro is designed to meet the needs of its users.

Through the recently launched innovation platform, around 70 market participants have carried out technical testing of features including conditional payments, and explored possible use cases for integrating the digital euro into the broader financial ecosystem.

The ECB has also engaged with small businesses, vulnerable individuals and under-represented groups through interviews, focus groups and collaborations with consumer organisations.

This research aims to ensure that the digital euro is inclusive and accessible.

Findings are expected to be published in the third quarter of 2025.

Ongoing engagement with stakeholders remains a key element of the digital euro project.

The ECB has continued outreach efforts through technical meetings, workshops and individual consultations with market participants, retailers and consumers.

Particular attention has been paid to how the digital euro would function within the existing European payments landscape, with the aim of complementing private sector solutions.

As legislative discussions progress, the ECB has maintained its support by providing technical input to EU institutions and sharing updates with euro area finance ministers via the Eurogroup, as well as with the European Parliament.

“We are pleased to see that our efforts remain on track as we keep working to deliver on the request of EU leaders to accelerate progress on a digital euro,”

said Executive Board member Piero Cipollone, who chairs the High Level Task Force on a digital euro.

“In light of today’s geopolitical and economic challenges, we welcome an ambitious pace for the legislative work.”

The digital euro project is a collaborative initiative involving the ECB, national central banks, industry participants, consumer advocates and policymakers.

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