One topic the Eurosystem – like many other central banks around the world – is currently dealing with is the introduction of central bank digital currency, or CBDC. While the People's Bank of China (PBC) is well advanced in terms of its work on CBDC, the Eurosystem has also been conducting research into this topic for some years now.
Back in 2020, the Eurosystem published a report on a retail CBDC in the euro area – a digital euro. CBDC is uncharted territory for central banks. At the same time, the implications for the financial system are potentially far-reaching and hard to predict. That is why it is important for central banks to 1. Move ahead swiftly but thoroughly 2.