Tag: European Central Bank (ECB) News

The ECB met on February 5th to decide on the Eurozone’s monetary policy: what happened to interest rates? Here are the results.

The European Central Bank meeting on Thursday, February 5th, 2026, saw the members of the Governing Council gather to discuss, among other things, the Eurozone’s monetary policies. On the table were decisions regarding interest rates. What was the outcome?

ECB Meeting: What is the Economic Context?

The final ECB meeting of 2025 took place against a complex economic backdrop, where uncertainty about the future reigns supreme, amid the unpredictability of Donald Trump and ongoing wars that seem destined to last. The main themes centered primarily on economic growth, heavily influenced by the instability of the geopolitical context, and inflation, which stood at 1.7% according to the latest data – in line with forecasts. Let’s look at the decisions in detail.

The ECB Leaves Interest Rates Unchanged

Thursday, February 5th, Frankfurt. The Governing Council of the European Central Bank has communicated its decision on monetary policy for the Eurozone. As expected by the majority of analysts, the ECB has decided to keep its three key interest rates unchanged. Consequently, the deposit facility rate remains stable at 2%, the rate on main refinancing operations at 2.15%, and the marginal lending facility rate at 2.40%.

The Reasons Behind the Choice

The ECB explained that the decision was driven by the fact that the disinflation process is in line with expectations and should stabilize at the 2% medium-term target. As mentioned, the latest reading showed inflation in the European Union at 1.7%, a threshold significantly lower than the targets set by the Governing Council.

The Eurozone economy has shown resilience in the face of recent shocks that have hit the global market. According to the official statement, “the economy continues to show good resilience in a difficult global context. The low unemployment rate, the strength of private sector balance sheets, the gradual execution of public spending on defense and infrastructure, together with the favorable effects of past interest rate cuts, are supporting growth.

With This Meeting, the ECB Confirms the Trajectory

The ECB’s February 2026 meeting decreed that interest rates will remain at December levels: this is the fifth consecutive meeting with this outcome. Despite the highly confused global context, inflation continues to hold steady, and the Central Bank signals a cautious optimism, confirming its future trajectory.

The coming weeks will be crucial to see if the data confirms the current scenario and what the Eurotower’s next move will be.The next meeting is scheduled for March 18-19, 2026: what will the members of the Governing Council decide? To make sure you don’t miss the upcoming meetings, take a look at our 2026 ECB calendar – in any case, we will be here to comment on them.

Future Outlook

Maintaining interest rates at a low level is an expansive economic policy measure aimed at supporting growth by reducing the cost of borrowing: businesses can access loans more easily, produce more wealth, and the economy benefits. When money costs less, stock markets also benefit, as low rates stimulate the circulation of capital: on one hand, companies borrow more easily and have more room for financial operations, acquisitions, and expansions. This increases potential earnings and, consequently, the likelihood of share prices rising.

On the other hand, investors shift from more stable but less profitable securities, such as bonds, to riskier financial assets with higher potential returns. This second category includes stocks and related indices, as well as cryptocurrencies.

To make sure you don’t miss the upcoming ECB meetings, check out our calendar and sign up for Young Platform!

Sign up to Young Platform

Start now

The 2026 calendar of meetings not to be missed

When will the next ECB meeting be held? The calendar of the European Central Bank (ECB) is closely monitored, not only by investors and market experts but also by ordinary citizens throughout the Eurozone. People follow the Central Bank’s meetings with interest and concern, as its decisions can significantly impact household finances.

Each ECB meeting is highly anticipated and preceded by numerous predictions about Christine Lagarde and the Governing Council’s actions, whose statements are carefully analysed. Below is the 2026 calendar (and beyond) of meetings to track, so you won’t miss any important appointments with the Frankfurt-based institution.

Next ECB monetary policy meeting: 2026 calendar

The European Central Bank (ECB) has an annual calendar with several scheduled meetings. Typically, it holds meetings twice a month; however, monetary policy decisions are discussed only eight times a year. These meetings are highly anticipated, as they can significantly influence financial markets and the economy.

The ECB’s calendar is divided into two categories: upcoming monetary policy meetings and non-monetary policy meetings. 

Monetary policy meetings are held on Thursdays and are followed by a press conference featuring ECB President Christine Lagarde. During this conference, she presents the decisions to the public and journalists live on television. Read the article: ECB press conference live: how and where to watch the event?

What topics are discussed in each ECB monetary policy meeting? Key issues generally include growth and GDP in the Eurozone, quantitative tightening, inflation trends, and interest rates.

Decisions regarding interest rates are particularly crucial because they directly affect citizens’ savings and purchasing power. For example, rising interest rates can increase mortgage costs. For the ECB, adjusting interest rates is a vital tool for achieving its primary goal: maintaining price stability.

That said, the initial question arises: when will the next ECB meeting take place? 

The 2026 calendar of monetary policy meetings

• 4-5 February 2026
• 18-10 March 2026
• 29-30 April 2026
• 10-11 June 2026
• 22-23 July 2026
• 9–10 September 2026
• 28-29 October 2026
• 16-17 December 2026

Want to stay ahead of the curve? Sign up for Young Platform!

Except for the September meeting, which will take place at the Deutsche Bundesbank – the German central bank – all ECB meetings in 2026 will be held at the Eurotower in Frankfurt, the ECB’s headquarters. It will be chaired by the Governing Council of the European Central Bank, the institution’s main decision-making body.

This comprises President Christine Lagarde, Vice President Luis de Guindos, four members appointed from among the leading Eurozone countries, who hold office for eight years, and the governors of the national central banks. 

After each meeting, investors closely monitor market reactions to the European Central Bank’s decisions. Some of these also impact the cryptocurrency market. For this reason, upcoming ECB meetings, such as those of the Federal Reserve (see the Fed’s 2026 meeting calendar), should be kept in mind. 

On Young Platform, Italy’s leading cryptocurrency exchange, you can check cryptocurrency prices alongside reports on each ECB meeting. 

Discover Young Platform

Next non-monetary policy ECB meeting: 2026 calendar

The ECB meeting calendar also includes sessions that do not address monetary policy. On these occasions, the European Central Bank also carries out other tasks and responsibilities, such as banking supervision for the Eurozone. Here are all the dates of the upcoming meetings: 

• 25 February 2026
• 8 April 2026
• 20 May 2026 
• 30 September 2026
• 18 November 2026

ECB: 2025 meeting calendar

• 29-30 January 2025
• 5-6 March 2025
• 16-17 April 2025
• 4–5 June 2025
• 23-24 July 2025
• 10-11 September 2025
• 29-30 October 2025 (at the Bank of Italy in Florence)
• 17-18 December 2025

ECB: 2024 meeting calendar

• 25 January 2024 
• 7 March 2024
• 11 April 2024
• 6 June 2024
• 18 July 2024
• 12 September 2024
• 17 October 2024 (at the Bank of Slovenia)
• 12 December 2024

ECB: meeting calendar for 2023

• 2 February 2023
• 16 March 2023
• 4 May 2023
• 15 June 2023
• 27 July 2023
• 14 September 2023
• 26 October 2023 
• 14 December 2023

The next ECB meeting in 2026 is scheduled shortly. However, this year’s meeting schedule is packed, and there will be plenty of opportunities to discuss the Eurozone economy. Want to stay updated effortlessly? Sign up for Young Platform so you don’t miss the news that moves the markets!

Sign up to Young Platform

Start now

What are the consequences of the European Central Bank (ECB) raising interest rates? It might seem like a technical adjustment, but the impact of this policy is significant, affecting everyone—from businesses to individual savers. So, what actually happens when the ECB makes this decision during its monetary policy meetings?

Here is the full calendar of the European Central Bank’s meetings for 2025.

What Are Interest Rates?

Before exploring the consequences of an ECB interest rate hike, it’s essential to clarify a few basic concepts. Generally speaking, interest rates are percentages that indicate the cost of borrowing money—that is, what you pay the bank when you take out a loan. At the same time, they determine how much your savings earn—essentially, the return on money deposited in a bank.

For example, if you borrow €10,000 at an interest rate of 3%, you’ll need to repay the original amount plus 3%, which comes to €300.

On the other hand, if you deposit €10,000 at a 3% interest rate, you’ll earn €300 per year.

ECB interest rates, however, are more like “fees” that the institution charges commercial banks in the Eurozone when it lends them money. These rates act as a benchmark for the rates that banks then offer to their customers.

ECB Interest Rates: The Different Types

The ECB sets three main types of interest rates:

• Main refinancing operations rate: This is the rate applied to banks borrowing money from Frankfurt for a period of one week.
  
• Marginal lending facility rate: This applies to overnight loans—those that must be repaid by the next working day.
  
• Deposit facility rate: This is the rate paid on money that banks deposit overnight with the central bank.
  

These are three distinct but interrelated rates, and the European Central Bank usually adjusts them simultaneously, either raising or lowering them together. You can follow this section each month to stay updated on forecasts and outcomes from the ECB’s monetary policy meetings.

Why Does the ECB Raise Interest Rates?

For the European Central Bank, interest rates are a key tool of monetary policy used to fulfil its main objective: maintaining price stability.

This stability is most commonly threatened by inflation, which drives prices up significantly. When inflation is high, the purchasing power of individuals falls—in other words, people can buy less with the same amount of money compared to periods of lower inflation.

To help restore purchasing power, the ECB resorts to raising interest rates. But how exactly are these two elements connected, and what are the consequences of such a monetary policy decision?

ECB Interest Rate Hikes: What Are the Consequences?

More Expensive Loans and Reduced Spending

One of the first consequences of a rise in interest rates is that borrowing becomes more expensive. As a result, people are encouraged to save rather than spend, and the amount of money in circulation decreases—since borrowing and investing money becomes less attractive.

Higher Returns for Savers

When the ECB raises interest rates, it becomes more expensive for banks to access funding. Consequently, it’s less favourable for customers to take out loans. Mortgages become less affordable, and it becomes harder for businesses to secure financing. However, savers benefit from higher returns on their deposits.

Currency Appreciation

Higher interest rates can attract foreign investment, strengthening the euro. This can make imports cheaper and contribute further to reducing inflation.

These are the most immediate effects of an ECB interest rate hike. However, the decision is part of a broader monetary strategy. Raising rates also helps to lower inflation expectations, which can ease pressure on wage demands—as workers are less likely to push for higher salaries. The European Central Bank also aims to avoid a wage-price spiral and protect the labour market.

Current Situation: 2025

Following a period of interest rate hikes aimed at curbing inflation, the ECB began cutting rates in 2025. On 17 April 2025, the Bank reduced interest rates by 25 basis points, bringing the deposit rate down to 2.25%, the main refinancing rate to 2.40%, and the marginal lending rate to 2.65%.

This decision was made against a backdrop of falling inflation and sluggish economic growth, with the goal of stimulating the Eurozone economy.

Impact on Mortgages

The rate cuts have had a positive effect on mortgages:

• Variable-rate mortgages: Monthly payments have decreased; for instance, a typical 25-year mortgage of €126,000 has seen repayments fall by around €17.
  
• Fixed-rate mortgages: These have become more attractive, with rates currently ranging between 2.19% and 3.85%.

Banks are adjusting their offers in line with the ECB’s policy shift, making this a favourable time for anyone looking to take out a mortgage.

The ECB’s next monetary policy meeting is scheduled for 5 June 2025, during which further rate cuts may be considered, depending on inflation trends and economic performance.

On 11 April 2024, the European Central Bank (ECB) is set to make a decision that could affect the economy across Europe. Recent data showing a surprising drop in inflation rates in France and Italy are growing speculation about a potential interest rate cut. This article explains the basics of the ECB’s role, inflation dynamics, and the possible impacts of upcoming policy decisions.

The European Central Bank explained

The ECB guards monetary stability for the Eurozone countries, ensuring that the euro remains a stable and reliable currency. Its main tool for achieving this goal is manipulating interest rates, a lever that directly influences economic activity across the continent.

The importance of ECB decisions

The ECB’s decisions have repercussions for the entire economy, from the expansion of companies that borrow to invest in their businesses to interest rates on personal savings accounts or mortgages. 

The adjustment of interest rates can, in fact, stimulate economic growth by making borrowing cheaper or, on the contrary, cool an overheated economy. In other words, the health of the economy, reflected in employment rates, business growth, and consumption, is directly influenced by ECB policies.

ECB impact on markets 

The ECB’s decisions affect not only the traditional economy but also the investment world, including cryptocurrencies. 

When the ECB changes interest rates, it affects how people invest their money. If interest rates are low, it costs less to borrow money, which may make investing in stocks or real estate more attractive. On the other hand, if rates rise, keeping one’s savings in bonds with lower risk rates may become cheaper.

Although cryptocurrencies belong to a market that is considered more volatile, they are not insulated from the effects of these policies. The ECB’s decisions may influence investors’ risk appetite: in times of low rates, some may seek higher returns in cryptocurrencies, while in times of higher rates, they may prefer investment options considered safer.

The element that most influence interest rate decisions is inflation. 

The role of inflation and its effects

Inflation measures how much more expensive goods and services have become in a given period. A certain level of inflation is normal and even desired in a healthy economy, as it indicates growth. However, too high or too low inflation can signal trouble, affecting everything from your grocery bill to your savings.

High inflation means your money is not worth as much as before, affecting how households plan their budgets and the future. To manage inflation, central banks such as the ECB adjust interest rates. Lowering rates can encourage spending and investment by making borrowing cheaper while raising rates can help cool a sluggish economy.

How to monitor ECB decisions 

To monitor these dynamics, you can use Young Platform. As an app and on the web, Young Platform offers free membership and publishes updates that allow you to monitor the impact of economic news on cryptocurrency prices in real-time. Additionally, on the Young Platform website, all content, news, and in-depth articles are free, providing a valuable resource for staying informed.

Join Young Platform

Another useful strategy is to mark the dates of upcoming ECB meetings on your calendar or follow live press conferences. This allows you to be among the first to understand the ECB’s decisions and how they might affect the market, including cryptocurrency.

The current economic scene

Recently, there was a positive surprise for the Eurozone economy, including in countries such as Italy, France, and Germany. Inflation, i.e., as we have seen, how fast the prices of goods and services such as food, clothes and petrol rise, fell more than everyone expected in March 2024, to 2.4%. Experts thought it would remain at 2.6 per cent. The core inflation rate, which excludes volatile components such as energy, food, alcohol and tobacco, also decreased from 3.1 per cent to 2.9 per cent. This might seem like a small change, but it has great significance.

• France: inflation slowed down significantly, with declines in the prices of services, energy and food.
• Italy reported lower-than-expected inflation rates, following a similar trend to France.
• Germany has the largest economy of all the Eurozone countries and saw prices increase by only 2.2%, the slowest pace in three years. 

When inflation falls, it means that price increases slow down. For people, this might mean that the money they earn ‘lasts longer’ and that they notice fewer price increases when they shop daily. Inflation cooling in more than two major Eurozone economies has led to more speculation about the ECB’s next step.

What would an ECB rate cut signify?

Interest rates influence how much it costs to borrow money. When they are low, people and companies can borrow more easily to buy a house or invest in new projects.

Thus, if the ECB decided to lower short-term interest rates, it could make loans and mortgages cheaper, stimulating economic growth. However, for savers, this could mean lower returns on savings accounts.

Some numbers to watch out for 

Despite the good news, not all sectors are slowing down similarly. Inflation in services, such as restaurants and transport, remained more or less the same, showing that wages can still push up prices in some areas. The ECB needs to consider this carefully, as such an increase could result in a postponement of the interest rate cut.

The labour market 

While discussing inflation and interest rates, we have to consider another important factor for this picture: the labour market. In February 2024, the number of people out of work in the euro area was 6.5 per cent, slightly lower than last year. This means that, despite everything, people are finding jobs, which is a good sign for the economy. However, the forecast for March given by Istat is not the best, with a provisional 7.5% unemployment rate.

The difficult task of the ECB 

Not all Eurozone countries experience the same situations and have the same economic climate. This difference between countries is crucial for the ECB when considering interest rates. It has to ensure that whatever decisions it makes work not only for countries with inflation problems but also for those doing well. The ECB has the complicated task of keeping everything in balance without causing problems in any area.

Conclusion 

All of this affects us closely, from falling inflation to stable unemployment rates and differences between countries. It affects how much the things we buy cost, how easily companies can grow and, ultimately, how many people can find work. While we wait to see what the ECB decides, we can be sure its actions will directly impact our personaleconomy, investments, and jobs.

Sign up to Young Platform

Start now

This article explores the outcome of the ECB’s March 2024 meeting, scheduled for 7 March 2024, by analysing decisions on interest rates, asset purchase programmes and adjustments in operational frameworks. As the eurozone faces inflationary changes and economic growth trajectories, understanding the ECB’s strategic responses is crucial for financial professionals, investors and policy analysts.

ECB Monetary Policy Decisions  

In a move closely watched by markets and policymakers, the ECB Governing Council kept key interest rates unchanged, reflecting a nuanced approach to the fragile eurozone economic recovery and falling inflation. 

The decision to keep the rates for the primary refinancing operations, the marginal lending facility and the deposit facility at 4.50%, 4.75% and 4.00%, respectively, underlines the ECB’s cautious optimism and commitment to price stability.

This decision is based on a complex economic environment characterised by declining inflation but persistent domestic price pressures, particularly wage growth. 

The latest staff projections indicate a downward revision of inflation rates for the coming years, with an average expectation of 2.3% in 2024. These provide a glimpse of the ECB’s challenges. The figures and softened growth forecasts underline the delicate balance the ECB aims to strike between supporting economic growth and keeping inflation within its target.

APP and PEPP

A significant part of the adjustments to the ECB’s monetary policy instruments concerns the Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP). The decision to let the APP portfolio decline aligns with a gradual normalisation strategy, moving away from pandemic-era monetary support measures. The gradual reduction of the PEPP portfolio, scheduled to decline by EUR 7.5 billion per month in the second half of 2024, indicates the ECB’s intention to withdraw cautiously from expansionary monetary stimulus, reflecting a response to the improving, albeit still precarious, economic landscape.

The ECB’s approach to refinancing operations was also reviewed. This analysis underlines the ECB’s efforts to refine its monetary instruments better to align them with current and projected economic conditions, ensuring that liquidity provisions to banks are consistent with broader policy objectives.

These programme adjustments are not merely technical changes but signal a deeper transition in the ECB’s policy paradigm. The ECB navigates towards normalisation by carefully scaling back asset purchases and recalibrating refinancing operations while remaining nimble enough to respond to new economic shocks or developments.

Economic Outlook 

The March 2024 meeting also highlighted the ECB’s long-term strategic planning, mainly through changes to its operational framework for implementing monetary policy. 

The sluggish growth forecast in 2024 suggests a euro area grappling with internal and external pressures, from high government debt ratios to global trade uncertainties. However, the anticipated rebound in consumption and investment from 2025 to 2026 reflects confidence in the region’s underlying economic resilience and the expected easing of inflationary pressures.

This section of the ECB report emphasises the role of supportive fiscal and structural policies alongside monetary strategies. The ECB’s call for rapid implementation of the Next Generation EU programme and greater integration in banking and capital markets emphasises the multifaceted approach needed to address current economic challenges and strengthen long-term growth.

Conclusion 

The March 2024 ECB meeting encapsulates a critical moment in the eurozone monetary policy landscape. By maintaining interest rates, refining asset purchase programmes, and refinancing operations, the ECB carefully balances its immediate responses to current economic conditions with its long-term strategic objectives. 

As inflation rates adjust and economic projections evolve, ECB policies will be crucial in shaping the euro area’s path to recovery and stability.

You are currently on the Young Platform blog. Keep yourself updated with macroeconomic events directly on the app and observe their real-time impact on cryptocurrency prices.

Sign up to Young Platform

Start now

As the ECB meeting in January 2024 approached, speculation in the financial markets was rife. However, the decisions made at the January 25, 2024 meeting reflected a cautious approach in a continually evolving economic landscape. In line with analysts’ expectations, the European Central Bank maintained interest rates at their current levels.

Maintaining Interest Rates

The Governing Council of the ECB, in its meeting on January 25, 2024, unanimously decided to keep the three key ECB interest rates unchanged. This decision means that the interest rates on the primary refinancing operations, the marginal lending facility, and the deposit facility remain at 4.5%, 4.75%, and 4%, respectively. This move aligns with the ECB’s commitment to ensuring medium-term inflation aligns with its 2% target.

Statements from Christine Lagarde

Christine Lagarde, President of the European Central Bank, commented, “The Eurozone economy likely stagnated in the last quarter of 2023 and was weak in the first quarter of 2024. However, some indicators point to a recovery later in the year. Inflation, which fell to 2.9% in December, is expected to continue to decline in 2024.” She emphasised that discussing interest rate cuts is still premature, as the ECB must progress further in the disinflation process before being sure that inflation will reach its 2% target.

At the World Economic Forum in Davos, Lagarde highlighted the factors the ECB is monitoring that will influence future interest rate decisions. Notably, she mentioned a shift from the ‘normality’ pre-2023, suggesting that the normalisation observed in 2023 is leading towards a “non-normal” period, where we will witness a change in the drivers of the global economy and new growth modalities.

The Role of Consumption

Until now, consumption has acted as a vital growth engine, driven by favourable conditions that are waning. This gradual depletion of positive factors implies a transformation in the economy’s driving force.

Drastic Reduction in Savings

We have witnessed a significant reduction in excess savings in advanced economies, dropping from an average of 10% to figures close to zero. This decrease, along with a less tense labour market, suggests a decline in consumption power as an economic driving force.

Global Trade and Growth Prospects

Global trade is another element showing signs of normalisation and significantly impacting the Council’s decisions. Europe struggles to keep pace with the significant powers, burdened by the geopolitical situation. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, emphasised that thanks to the resilience of international trade, Europe has been able to overcome the cut in energy imports from Russia following the invasion of Ukraine.

Governing Council’s Outlook

In the ECB meeting in January 2024, the Governing Council highlighted that new information essentially confirms their previous assessment of medium-term inflation prospects. Despite a base effect causing an increase in overall energy-related inflation, the downward trend in underlying inflation continues.

Monetary Policy: What’s Next?

The Governing Council remains committed to bringing inflation back to the 2% target on time. Based on its current assessment, the Council believes that the ECB reference rates, if maintained sufficiently long, will significantly contribute to achieving this objective.

Asset Purchase Program (APP) and PEPP

During the ECB meeting in January 2024, the Council noted that the APP portfolio is reducing at a measured and predictable pace. Regarding the PEPP (pandemic emergency purchase program), the Council plans to reinvest the capital repaid on maturing securities in the first half of 2024, reducing the PEPP portfolio by an average of €7.5 billion per month in the second half of the year, and ending reinvestments by the end of 2024.

Analysts’ Reactions

Analysts like Morgane Delle Donne, Head of Investment Strategy Europe at Global X, noted that markets anticipate a more dovish turn by the ECB within the year. Martina Daga, Macro Economist at AcomeA SGR, pointed out that the ECB’s acknowledgement of positive progress in inflation and the labour market shows a softer stance. Nicolas Forest, CIO at Candriam, highlighted the ECB’s data-dependent approach, not expecting policy easing before June. David Chappell, Senior Fixed Income Portfolio Manager at Columbia Threadneedle Investments, noted that Lagarde hinted at the possibility of a rate adjustment starting in June.

Growth Estimates

The ECB revised downward its inflation and growth estimates for the Eurozone for the first quarter of 2024. This emerged from the Survey of Professional Forecasters (SPF), involving 59 economists and financial analysts, conducted between January 5 and January 10.

Inflation is expected to decrease to 2.4% in 2024 and stabilise at 2% in 2025 and 2026. Real GDP growth expectations for 2024 and 2025 have also been revised downward, with a slowdown projected at 0.6% this year and a recovery to 1.3% next year.

Conclusion

The ECB meeting in January 2024 concludes with a cautious yet vigilant approach to monetary policy, reflecting the central bank’s commitment to price stability and economic growth amid revised forecasts and changing global conditions. The decision to keep interest rates unchanged, along with the downward revisions in inflation and growth estimates, indicates careful navigation in a complex economic environment.

Buy BTC on Young Platform

Buy now

Is the Digital Euro on the way? The European Central Bank is collaborating with five tech companies to study its CBDC

In a statement dated from the 16th of September 2022, the European Central Bank announced its collaboration with five tech companies to test and develop a possible Central Bank Digital Currency. CBDCs are digital currencies that differ from cryptocurrencies in that they are issued by central banks and are therefore not decentralised like Bitcoin is. For the ECB, the main advantage of the digital euro would be its ease and accessibility, since all it would take is a simple internet connection to use CBDC-related banking services. In 2021, the European Union prompted an investigation phase for the development of a CBDC that was supposed to last two years. By mid-2023, the ECB will deliver its final verdict: digital euro yes or no?

Companies selected to develop prototypes and use cases for the CBDC

Before taking a decision on the digital euro, the ECB involved five companies to develop prototypes and use cases in which the CBDC could be used. To choose these companies, a call for applications was made in April 2022. 54 companies interested in working on the digital euro answered the call. On the 16th of September, the selected companies were announced, each with an area of relevance:

1. CaixaBank: peer-to-peer online payments;
2. Worldline: offline peer-to-peer payments;
3. EPI: payments at the point of sale arranged by the payer;
4. Nexi: payments at the point of sale arranged by the payee;
5. Amazon: e-commerce payments.

The ECB is therefore working with Amazon and Co. to develop its CBDC. It is time for the prototype operation! These tech companies are called upon to develop front-end service interfaces for the digital euro. The aim is to test transactions with the digital euro, peer-to-peer payment systems, in e-commerce but also at the point of sale. The work on the prototypes will last until the first quarter of 2023 and will then be presented in a report.

Why is the ECB interested in the digital euro?

For the ECB, the digital euro could be a functional supplement to cash. In what sense? The digital euro is not envisaged as a replacement for the euro as we know and use it, but as an additional choice available for payments: ‘it could foster financial innovation and improve the overall efficiency of the payments system’. The CBDC would be an electronic currency issued by the ECB and national central banks, accessible to all citizens and businesses. According to the ECB, the digital euro can only be successful if it is used by European citizens in their daily lives, so it must add value and be genuinely useful. The ongoing tests are verifying precisely these aspects. The ECB continues to test the ground while the White House seems more determined than ever to launch its digital dollar!

Sign up to Young Platform

Start now