The Banco de España is pleased to share an update regarding the ongoing preparation phase for a digital euro, as detailed in the European Central Bank’s (ECB) third progress report. This report, published on July 16, 2025, at 08:54, offers valuable insights into the significant advancements made in exploring the feasibility and design of a potential central bank digital currency (CBDC) for the euro area.
This latest publication marks a crucial step in the ECB’s commitment to thoroughly investigating the implications and practicalities of introducing a digital euro. The preparation phase, which commenced with the objective of conducting in-depth research and development, is meticulously designed to address a wide range of technical and non-technical considerations. The goal is to ensure that any potential digital euro would be secure, efficient, and accessible, while also respecting the existing financial landscape and regulatory frameworks.
The third progress report elaborates on several key areas of focus. Among these, significant attention has been paid to the various design options for a digital euro, including considerations for its issuance, distribution, and operational framework. The ECB has been actively engaging with a broad spectrum of stakeholders, including financial institutions, policymakers, and technology experts, to gather diverse perspectives and ensure a comprehensive approach.
Furthermore, the report likely details the progress made in testing and evaluating different technological solutions that could underpin a digital euro. This includes exploring aspects such as the underlying distributed ledger technology (DLT) or other innovative architectures, as well as the associated security protocols and privacy mechanisms. The ECB’s approach is characterized by a careful and iterative process, aiming to build a robust and resilient digital currency.
The Banco de España, in alignment with the ECB’s objectives, is actively involved in these preparatory efforts. Our institution recognizes the potential benefits that a well-designed digital euro could bring, such as fostering innovation, enhancing payment system efficiency, and ensuring financial inclusion. At the same time, we are mindful of the challenges and risks that need to be carefully managed throughout this process.
This third progress report serves as a testament to the diligent work being undertaken by the ECB and its constituent national central banks. It underscores the ongoing commitment to a transparent and evidence-based approach in exploring the future of digital currency in the euro area. The Banco de España encourages interested parties to review the full report, which provides a more detailed account of the progress achieved and the next steps in this important endeavor. We remain dedicated to contributing to a future where digital payments are both advanced and trustworthy.
ECB publishes third progress report on the digital euro preparation phase
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