The European Central Bank (ECB) is accelerating its efforts to launch the digital euro, providing regular updates on its progress. With the completion of the prototype design for thee-euro, the ECB is now preparing for a crucial phase that will bring this central bank digital currency (CBDC) closer to functional testing.
In a recent report, the ECB unveiled the findings of a market study validating the feasibility of the digital euro. The study indicates that numerous European stakeholders are ready to support the development of this digital currency, and there are various architectural and technological options available on the market for its technical design.
Another report details the final conclusions of the e-euro prototyping exercise, which took place from July 2022to February 2023. This exercise involved designing five user interfaces by different providers and creating a settlement system by the Euro system. Testing these prototypes demonstrated the smooth integration of the e-euro into existing payment methods, validating its online and offline functionality.
The next crucial step will be the presentation of the digital euro to the ECB's Governing Council in autumn 2023.The Council will then decide whether a second preparation phase should commence, involving the development and initial testing of the actual digital euro instead of prototypes. The final decision to issue or not the e-euro will come at the end of this preparation phase, which means an official announcement is not expected before 2024, with the final introduction likely taking an additional year.
In the field of blockchain, the importance of carbon neutrality and ESG (Environmental, Social, and Governance)criteria is increasingly recognized. The use of blockchain technology for financial transactions, including digital currencies, requires significant energy consumption. Carbon neutrality aims to minimize the environmental footprint by offsetting the carbon emissions associated with these operations.
Furthermore, ESG criteria are essential to ensure transparency, sustainability, and accountability in the use of blockchain. They allow for the assessment of the social and environmental impact of emerging technologies like the digital euro and promote sustainable practices.
As the ECB continues its efforts to test the digital euro, it is crucial to integrate carbon neutrality principles and ESG criteria in its design and implementation. This will help create a sustainable digital currency that is environmentally friendly and socially responsible, contributing to the transition towards a greener economy and the promotion of sustainable practices in the blockchain sector.
Etienne Rigaud, Business Development @BitSCOR