The European Central Bank (ECB) has published its first progress report on the development of a central bank digital currency (CBDC).
Published on 24 June, the report details technical measures such as encryption and hashing to protect the confidentiality of individual transactions and ensure data security.
It also obliges payment service providers to seek explicit consent from consumers before using financial data for commercial purposes, in order to increase transparency and trust.
A key feature of the ECB’s digital euro initiative is its support for offline transactions, allowing direct peer-to-peer exchanges without intermediaries.
This functionality would use advanced payment devices such as smartphones and specialised smart cards that could run on battery power to synchronise transactions with the blockchain once online connectivity is restored.
This is expected to improve accessibility and usability, especially in areas with unreliable internet access.
In addition to technical considerations, the ECB is consulting widely through its Rule Development Group, involving stakeholders ranging from service providers to the general public.
This approach aims to shape the regulatory framework and technical standards for CBDC, with the first comprehensive draft of the rulebook scheduled for publication by the end of 2024.
Global banking heavyweight Banco Santander is quietly laying the groundwork to enter the stablecoin space, eyeing fiat-pegged digital tokens as part of a broader strategy to offer crypto services to retail clients.
Crypto exchange Bitget has introduced a new investment product, BGUSD, a yield-generating stable asset tied to real-world financial instruments like U.S. Treasury bills and top-tier money market funds.
A growing number of banks are quietly integrating Ripple’s blockchain infrastructure to improve cross-border transactions, opting for a hybrid model that doesn’t require replacing their legacy systems.
Several of America’s largest banks—including entities tied to JPMorgan, Bank of America, Citigroup, and Wells Fargo—are exploring the creation of a shared stablecoin, according to sources familiar with the discussions.