Another step toward implementation: The ECB’s digital euro pilot program launches

The ECB’s Digital Euro Pilot Program

The development of the digital euro has reached a critical juncture. After years of analysis, conceptual development, and technical preparation, the Eurosystem is entering a new phase with the ECB’s pilot program.

The groundwork for this was laid during several successive project phases (see Figure 1): During the exploratory phase from 2021 to 2023, the European Central Bank (ECB) developed the basic design of the digital euro and examined the scenarios in which a European central bank currency in digital form could be usefully deployed. In parallel, technical prototypes were run to test, among other things, offline functionality and the interaction between digital wallets and intermediaries.