FX.co ★ ECB sets stage for launching digital euro

In a landmark decision, the European Central Bank (ECB) is making further steps towards launching a digital version of the euro. The ECB governing council officially moved forward to the preparation phase of the digital euro project on November 1, 2023. The preparation stage, which will take at least two years, will be dedicated to finalizing regulations, establishing the necessary platform, and developing the infrastructure for the digital currency. After two years, the regulator will decide whether to move to the next stage. With the help of the digital euro, individuals across the eurozone will be able to conduct online payments without any fees, and the asset itself will be free to use. Payments will be facilitated through state-regulated intermediaries—banks—which are set to receive a compensation model as an incentive. Moreover, businesses will be provided with guarantees against excessive service fees. In an interesting parallel, Russia implemented a law regarding the digital ruble on August 1, making it the third form of national currency alongside cash and non-cash payments. The unfolding of these initiatives in different countries is something to keep a close eye on, as it promises to unveil a broad spectrum of unique opportunities for global financial markets.