Home » ECB Publishes its Report on the Progress of the Digital Euro

ECB Publishes its Report on the Progress of the Digital Euro

25.06.2024 18:43 1 min. read Alexander Stefanov
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ECB Publishes its Report on the Progress of the Digital Euro

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.

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.

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