The European Central Bank (ECB) has confirmed it is moving the digital euro project to the next phase, following the successful completion of its preparation phase that began in November 2023. The decision reflects strong political backing from EU leaders, who urged accelerated progress at the October 2025 Euro Summit.
The new phase focuses on technical readiness, market engagement, and continued support for the legislative process. A final decision to issue a digital euro will only follow once EU lawmakers adopt the Regulation — expected in 2026.
Key Milestones & Timeline
- Preparation phase completed (Nov 2023 – Oct 2025)
- Legislation expected: 2026
- Pilot phase: possible start mid-2027
- Potential first issuance: 2029
If approved, pilot transactions could begin in 2027, making the Eurosystem ready for a potential digital euro rollout by 2029.
“A digital euro will ensure that people enjoy the benefits of cash also in the digital era,” said ECB Executive Board member Piero Cipollone. “It will enhance the resilience of Europe’s payment landscape, lower costs for merchants, and support innovation across the private sector.”
What’s Next
The Eurosystem will now:
- Build out technical infrastructure and pilot systems
- Finalise the rulebook with banks, PSPs, merchants and consumers
- Conduct further user research, including for offline functionality
- Provide technical support to legislators as needed
Key providers for core components — including risk management, SDK, and offline payments — have already been selected, with all vendors EU-controlled. The ECB estimates development costs at ~€1.3B until 2029, with industry integration costs of €4–€5.8B, broadly aligned with PSD2 implementation spending.
Why It Matters
The digital euro aims to:
- Complement cash, not replace it
- Protect Europe’s monetary sovereignty
- Provide a public digital means of payment
- Reduce dependence on non-EU payment providers
- Enable offline payments with strong privacy protections
As digital payments continue to rise and geopolitical tensions reshape financial infrastructure priorities, the digital euro is positioned as a strategic tool for European autonomy and payments innovation.
In-Depth Guide
For a full explanation of how the digital euro will work, holding limits, privacy protections, and comparisons with stablecoins and bank money, read our complete breakdown: Digital Euro Explained (2025 Guide)
This information is based on the official press release from the European Central Bank.
