The European Central Bank (ECB) has published its first report on the progress of developing a central bank digital currency (CBDC).
Released on June 24th, the report contains detailed information on technical measures such as encryption and hashing to protect confidentiality in individual transactions and ensure data security.
It also obliges payment service providers to explicitly request consent from users before using financial data for commercial purposes, in order to enhance transparency and trust.
A key feature of the ECB’s digital euro initiative is its support for offline transactions, enabling direct peer-to-peer exchange without intermediaries.
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This functionality will utilize advanced payment devices such as smartphones and specialized smart cards, which could operate on battery power to synchronize transactions with the blockchain after restoring online connectivity.
This is expected to improve accessibility and usability, especially in areas with unreliable internet access.
In addition to technical considerations, the ECB is conducting extensive consultations through its Rulebook Development Group, involving stakeholders from service providers to the general public.
This approach aims to shape the regulatory frameworks and technical standards for CBDC, with the first comprehensive rulebook project planned for publication by the end of 2024. 
The ECB Releases its Report on the Progress of the Digital Euro 