The European Central Bank has moved its digital euro project into a more operational phase by launching two dedicated workstreams, G5 and B1. The new groups are focused on how the proposed central bank digital currency would connect with physical payment infrastructure and how its services would be tested and certified before deployment.
G5 and B1 split the technical workload
The initiative sits within the Rulebook Development Group, which was set up in January 2023 to draft the functional framework for the digital euro. The ECB said the G5 workstream will define technical requirements for interaction with physical infrastructure. That includes payment initiation at terminals through NFC and QR codes, along with the integration of offline digital euro functions into existing point-of-sale systems and ATM networks. The group is also expected to examine softPOS and mobile acceptance models.
The B1 workstream has a different task. It will build the testing ecosystem meant to ensure that digital euro services comply with strict security and performance requirements. Its mandate includes setting certification rules for end-user devices and payment service providers before they are allowed to access the digital euro network.
Monetary sovereignty sits behind the project
The technical documents deal with implementation, but the policy rationale is broader. European policymakers increasingly see a central bank digital currency as a way to protect Europe’s monetary sovereignty and reduce reliance on foreign digital assets. ECB President Christine Lagarde has repeatedly described the digital euro as a strategic necessity, with particular attention on the growing influence of U.S. dollar-denominated stablecoins.
The ECB’s stated objective is to make sure people in Europe can access a digital form of cash backed by the central bank rather than depending on privately issued payment instruments whose priorities may not match European financial stability concerns. That places the digital euro debate well beyond convenience at checkout.
Private-sector experts are being invited in
The ECB is also leaning on outside participation. It is calling for private-sector experts to join both workstreams alongside Eurosystem representatives. According to the guiding principles, the digital euro should operate as a standalone basic service, but it also needs to be attractive to market participants and leave room for private companies to build innovative services on top of it.
The mandates state that candidates should view the process as an opportunity to shape the digital euro rulebook. The ECB also said that all intellectual property created through this work will belong to the central bank. With these development sprints now underway, the vision of a digital euro that can be used at European ATMs and checkout counters is moving closer to implementation.