The European Central Bank (ECB) has released its third report on the digital euro project, outlining how the proposed central bank digital currency (CBDC) could be distributed and integrated with existing payment service providers' systems. The report suggests that the digital euro could be distributed via apps, digital and physical cards, and other form factors that enable consumers to make NFC and QR code in-store payments.

The report emphasizes the importance of standardizing the technical interaction between payer and payee to ensure that all payers can pay with the digital euro to all payees across the euro area, regardless of the intermediaries involved. The report suggests that both QR code and NFC contactless payments could be used for in-store payments, but notes that NFC provides a highly convenient end-user experience which consumers in the euro area are already familiar with.

The report also highlights the potential for emerging technologies for payment initiation to be adopted at a later stage if proven to provide benefits to end-users. In terms of access, onboarding, and cross-border payments made with the digital euro, the report suggests that end-users could access and use the digital euro either through payment service providers' existing online banking/payment apps or through a digital euro app provided by the Eurosystem.

The ECB plans to present a high-level comprehensive design for the digital euro later in the spring while continuing to analyze distribution options, develop a rulebook for the digital euro scheme, and engage with stakeholders. The governing council will then review the outcome of the investigation in autumn 2023 and decide whether to move on to a subsequent project phase.