The European Central Bank (ECB) took a practical step in the digital euro project by launching a test platform on Monday, involving around 70 companies from across Europe including banks, startups and payment providers.
The aim is to test how the digital euro can be used in everyday transactions and explore new services that can be developed with it. The participants are divided into two groups: Pioneers and Visionaries.
The Pioneers group is testing basic transaction functions such as conditional payments that are only completed when certain conditions are met, for example when a package has been delivered.
The ECB is providing a technical framework that reflects the possibilities of a future digital euro ecosystem, including application programming interfaces (APIs) and supporting materials. Companies are using the tools to simulate transactions, develop use cases and test how well the digital euro can be integrated into their existing systems.
The Visionaries group is exploring the potential of the digital euro in contributing to social goals. These include providing access to digital wallets through post offices, a crucial step for those without a bank account or smartphone.
The two groups will present their findings at a workshop that will run until May 2025. The final report will be compiled and will help the ECB decide on the official launch of a digital euro.
Meanwhile, European policymakers are grappling with security issues in the crypto world. After hackers used OKX’s Web3 platform to launder $100 million in Bybit’s heist, EU officials are now investigating whether the exchange violated MiCA regulations, while also emphasizing the importance of trust and control in digital finance.
