The digital euro is entering the preparation phase: the foundation for the future of digital payments.

The digital euro is entering the preparation phase: the foundation for the future of digital payments.

After a two-year investigation phase, the Digital Euro project is moving to the next phase, the preparatory phase. In this phase, the rules for the digital euro should be finalized and providers who can develop a platform and infrastructure should be selected. It will also test how to develop a digital euro that meets the requirements of the Eurosystem and the needs of users. The digital euro is intended to be a digital form of cash that can be used for digital payments across the euro area. Basic use should be free. The digital euro is intended to exist alongside physical cash and not replace it. The decision to introduce the digital euro will only be made once the European Union's legislative process has been completed. What this information means to a financial expert is that the adoption of the digital euro is progressing and could impact the way payments are processed in the euro area. It could also lead to technological developments and opportunities for financial services companies that could develop platforms and infrastructure for the digital euro. Frequently asked questions on the topic are: What happens in the preparation phase? The digital euro should replace cash? Is the digital euro safe?