The European Central Bank (ECB) has presented a progress report on the creation of the digital euro in a second progress report that details the planning and delivery of alternatives recently authorized by its Governing Council.
The latest progress report describes a digital approach to settlement and distribution in euros. The rest of the process is expected to be completed as the ECB continues its research into the digital euro. But there is no guarantee that blockchain technology will or will not be released. Method of maintenance
The European Central Bank (ECB) has published a document (1) of progress on the development of the digital euro and a second progress report that outlines the planning and delivery of alternative methods recently authorized by its Governing Council.
The study anticipates four important challenges, following the timetable set by the ECB itself, which should decide to move from the analysis to the field of implementation of the project in the third quarter of 2023. The study describes the role of the Eurosystem and the market and declares that the central supervisor will take all the responsibility of supervision and the employees face in the system.
The Eurosystem central bank will confirm and record transactions, correct any errors made during the process, and be responsible for their accuracy. However, according to the document, “the digital euro will be built in such a way as to reduce the involvement of the Eurosystem in the processing of user data”.
The digital euro can be validated in offline peer-to-peer transactions embedded in digital security devices and “confirmed and recorded using security and hardware devices”.
Limits and Future Goals
Document (2) states that the ECB is not involved in blockchain technology. Eurosystems can use distributed ledger technology, primitive technology or no technology for maintenance work. The Euro system did not make a decision.
The choice of the best technology for the digital euro. Business processing methods that go beyond the restrictions placed on digital money accounts have access to automation in the bank accounts of users that should be included in deposits and payments (moving money to and from digital forms).
The document emphasizes that a “system” of pan-euro laws, regulations and practices will be necessary for the fair distribution of the digital euro. The purpose of this plan will be to open their accounts or digital wallets in euros or their origin; End users should always have the option to pay in digital euros. After a year of efforts, the ECB published its first digital euro progress report in September.