The ECB published the results of the digital euro prototyping exercise and the market research outcome report, as well as a letter from Member of the Executive Board Fabio Panetta to ECON Chair Irene Tinagli regarding the two publications.
The prototype exercise aimed to test how design choices for the digital euro could be technically implemented and integrated into the existing European payments landscape.
The tests showed that it is possible to "smoothly integrate" them, while leaving "ample scope for innovative features and technologies". The findings also confirmed that a digital euro could in principle work both online and offline, using independent designs. This would also increase the resilience of the digital euro.
The prototyping exercise is a part of the investigation phase of the digital euro project. This project was launched by the ECB and the euro area national central banks to ensure that central bank money remains accessible in the digital age. The investigation phase commenced in October 2021 and will be concluded in autumn 2023. It aims to address key issues relating to the design and distribution of a digital euro.
The market research exercise, which also forms part of the digital euro project investigation phase, was carried out to inform the ongoing investigative work on the design of a possible digital euro and to show a possible way forward should it be decided to continue the project this autumn.
The market research covered 12 components that may be needed to support a digital euro, addressing ways to deal with their development, maintenance and operation. These components would enable the issuance and redemption of digital euro, the initiation, processing and settlement of transactions, the management and protection of user access and user data, and all necessary interfaces between digital euro components and with digital euro users. Each component could be developed and operated either by market actors or in-house by one or more Eurosystem central banks.