 has released a progress report outlining the potential distribution and settlement options for a digital euro.){kind=link}
The European Central Bank has released a new progress report detailing the options for distributing and settling a potential digital euro.
According to the report, the digital euro could be distributed through a “centralized model,” in which the central bank directly provides the digital currency to consumers, or a “decentralized model,” in which the digital currency is made available through intermediaries such as commercial banks.
The report also discusses the possibility of using a “hybrid model,” which combines elements of both centralized and decentralized distribution methods.
In terms of settlement, the report notes that the digital euro could be settled in real-time, with immediate finality, or on a deferred basis, with settlement occurring at a later point in time.
In January 2023, the @ecb will invite market participants to take part in market research to obtain an overview of options for the technical design of possible digital euro components and services #CBDC https://t.co/c2GIL5Mapg
— Central Bank Payments News (@cbpaymentsnews) December 16, 2022
The report emphasizes the importance of ensuring the security and resilience of the digital euro, regardless of the chosen distribution and settlement model. To this end, the report discusses various technical and operational measures that could be implemented to protect against potential risks and vulnerabilities.
The release of the progress report is seen as a significant step towards the potential issuance of a digital euro, which has been under consideration by the European Central Bank for some time. However, the bank has emphasized that no final decision has been made on the matter and that further analysis and discussion is needed before any decisions are made.