Offline payments with the digital euro mean that there will be no digital footprint of the consumer's transaction which ensures the required privacy The post The milestones for the digital euro: When it will be put into pilot circulation, what will change in transactions appeared first on ProtoThema English.On the road to the digital euro, the European Central Bank is steadily moving towards the euro, having set specific milestones leading to its issuance and circulation by 2029, with offline payments as a key feature. Earlier, and for a period of one year, the digital euro will be put into pilot circulation. The offline payments with the digital euro mean that there will be no digital footprint of the consumers’ transactions, which ensures the necessary privacy to make it competitive against cash. Today, the whole process has moved from the planning phase to that of the technical implementation of the project, as shown in the special chapter on the steps towards the digital euro included in the report of the Governor of the Bank of Greece presented last Monday. This is the third phase covering the period October 2025-September 2027, which focuses on the further development and operational preparation of the digital euro. The three workstreams include: a) promoting technical readiness by developing the infrastructure and standards, b) preparing pilot tests, and c) working more closely with market players to finalise the rulebook. This phase is crucial as it constitutes the bridge between planning and practical implementation, to ensure that the digital euro operates safely, reliably, and with broad acceptance throughout the euro area. This was preceded by the first two phases on the road to the creation of the digital euro, as recorded in the report by BoE Governor Giannis Stournaras: 1. The exploratory phase (October 2020-October 2023): The first phase focused on examining the feasibility and defining the key features of the digital euro, including defining the fundamental principles for its adoption and use: maximum protection of user privacy, accessibility and ease of use for all social groups, and ensuring that the digital euro will function in a complementary way to cash. The phase was successfully concluded with the adoption of a strong strategic framework, paving the way for the next steps. 2. The preparation phase (November 2023-October 2025): This period marked the transition from theoretical exploration to practical planning. During this phase, the Eurosystem worked on defining the functional and technical characteristics of the digital euro, exploring pilot solutions and working with banks and other payment service providers. The milestone of the second phase was the first version of the Rulebook for the digital euro, which sets out the basic rules for the use and operation of the digital euro, as well as the roles and responsibilities of all participants in the digital euro ecosystem. This manual, which is currently being finalised, serves as a common frame of reference, enhancing transparency, consistency, legal certainty and a robust corporate governance framework. In the next phase, a pilot exercise is foreseen to be carried out (September 2027-September 2028): Provided that the legislative package on the digital euro is adopted by the end of 2026, a 12-month pilot exercise is foreseen to be carried out. As part of the exercise, selected payment service providers will work with the Eurosystem to test the technical, functional and operational readiness of the system in a controlled environment. All this will pave the way for the issuance of the digital euro (2029 onwards): the final decisions on the official launch of the digital euro will be taken by the competent bodies provided for in the relevant legislation, once adopted. The final decision on the issuance will be taken by the Governing Council of the ECB only after the legislation has entered into force. The advantages of the creation of the digital euro, as listed by the Bank of Greece, are as follows: -The digital euro is expected to be a modern means of payment, designed to meet the needs of all European citizens in the digital age. – It will be accessible to all euro area citizens, who will be able to obtain and use it on equal terms. – It will be universally accepted for payments throughout the euro area and, under certain conditions, in other countries, inside or outside the EU. – It will make maximum use of existing infrastructure and technical standards for its acceptance and settlement, minimising market adjustment costs. -It will enhance competition in the European payments landscape, while reducing reliance on non-European providers. – It will introduce new usage possibilities, such as offline payments. – It will push banks and other payment service providers to develop new products in conjunction with the digital euro. – It will operate to the most demanding security standards and within a strict framework for the protection of users’ personal data. “The digital euro is of particular importance for the future of Europe as it strengthens the monetary sovereignty in the euro area and the resilience of the European payments area. It offers a credible public alternative to central bank money over available private payment instruments and supports innovation. At the same time, it contributes to financial inclusion by enabling all citizens to participate in the digital economy,” concludes the Bank of Greece in its presentation on the digital euro. Follow en.protothema.gr on Google News and be the first to know all the news See all the latest News from Greece and the World, the moment they happen, at en.protothema.gr
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