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ECB amounts up digital euro prototyping workout as it nears possible pilot launch

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The European Central Bank (ECB) hasactually released a summary of the results of its digital euro main bank digital currency prototyping workout. The workout examined offline usage of a simulated digital euro and 4 other circumstances of interoperability with existing payments systems.

The task was part of the 2nd stage of Eurosystem preparations for a possible pilot launch of a digital euro in the fall of this year. The workout ran from July 2022 to February2023

Eurosystem established a centralized settlement engine for the workout called N€XT that utilized an unspent deal output (UTXO) information design. Five model client userinterface that represented varying usage cases were offered by personal business. Self-custody wallets were likewise trialed.

The UXTO design maintained client personalprivacy utilizing one-time UTXO addresses that did not expose the wallets holding them. User experience was similar for custodied and non-custodied wallets.

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The offline deals usage case was more troublesome. Seeking to gain “more thorough understanding of how the mix of hardware and softwareapplication procedure might prevent double costs and guarantee settlement finality and non-repudiation,” the report concluded:

“Questions stay as to whether the existing innovation is capable of providing, in the brief to medium term (five to 7 years), a production-ready and safe offline option.”

Nonetheless, the workout revealed that “online and offline digital euro models can be interoperable even if based on various information designs and technical styles.”

Simultaneously with the workout summary, the ECB released a “Market Research Outcome Report” on the digital euro. It likewise discovered that offline “solutions certified with the Eurosystem requirements would be unique and may produce unpredictability when an offline service may be allset.”

Survey participants preferred near-field interaction, Bluetooth userinterface or QR codes for offline deals. The market researchstudy attendedto 12 extremely technical elements of a prospective digital euro rollout, such as proxy lookup and devoted money account management.

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