European Central Bank Launches Innovation Hub to Evaluate CBDC as Preparation Phase Concludes

The European Central Bank (ECB) announced the establishment of an innovation hub that features 70 participants for its digital euro initiative.

These participants include various entities such as start-ups, banks, and payment service providers, among them notable names like Accenture, Swisscom, CaixaBank, and KPMG. According to the announcement made on Monday, these companies are collaborating with the ECB to investigate the potential payment features and applications of the central bank digital currency.

Last year, the ECB reached out to both small and large merchants as well as banks and payment service providers. ECB President Christine Lagarde stated that the testing phase, referred to as the preparation phase, is expected to conclude by October. A determination on whether to proceed with a digital euro is anticipated to follow the enactment of relevant legislation.