The European Central Bank (ECB) has embarked on a two-year preparation phase for its potential digital euro project. The focus of this phase, which began on Wednesday, is to establish regulations and select infrastructure providers for the platform’s development. The decision to issue this digital currency, however, remains under deliberation.

ECB President Christine Lagarde envisions the digital euro as a complimentary digital cash alternative that offers stringent privacy standards. This initiative is part of a wider global shift towards virtual cash. More than half of central banks surveyed by the Bank for International Settlements are also exploring such alternatives.

Despite this trend, some EU lawmakers have expressed doubts about the value and feasibility of the project, proposing a delay in the ECB’s decision-making process. The ECB maintains that this stage is purely preparatory and does not guarantee the issuance of a digital euro.

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