The Digital Euro Project: Recent Developments – The European Commission And ECB Perspectives

The European Central Bank ("ECB") and the European Commission ("EC") have been exploring the adoption of a digital euro, a central bank digital currency ("CBDC") in the euro area.

The proposal for the EU Regulation establishes a framework for facilitating and introducing a digital euro. This would be widely usable across the euro area. The digital euro is proposed to have legal tender status of euro cash. This is significant as, while electronic payments already exist, such offerings are provided by private intermediaries. A digital euro with legal tender status would mean a direct claim against the central bank. On 13 July 2023, the ECB released a fourth report on the progress of the investigation phase of a digital euro. This report outlined the ECB's progress of investigating the benefits of adopting a digital euro. The ECB's investigation phase dates back to 2021, which sets out basic principles for a digital euro. The investigation phase has engaged