The European Central Bank (ECB) has announced that it will begin the preparation phase for the digital euro project, which will last for two years. The ECB plans to lay the foundation for the possible issuance of a central bank digital currency (CBDC) beginning on November 1, but the decision to issue a digital euro will only be considered by the Governing Council once the European Union's legislative process has been completed. The preparation phase will focus on finalizing rules for the digital currency and selecting possible issuers, followed by testing and experimentation in accordance with user feedback and requirements under the central bank. The rollout of any digital euro is likely to attract the attention of regulators and policymakers, who will have their election for the European Parliament in June 2024.