The digital euro is an ambitious initiative by the European Central Bank (ECB) aimed at creating an official central bank digital currency (CBDC) for the eurozone. This new form of money promises to transform both retail and interbank payments across Europe, enhance financial transparency, and strengthen the EU’s sovereignty in the digital economy.
However, the project has faced skepticism from banks, lawmakers, member states, and users—mainly due to privacy concerns and perceived risks. Since 2023, related legislation has been under discussion in the European Parliament, but political factors and the 2024 elections have slowed progress. According to Piero Cipollone, a member of the ECB’s Executive Board, the digital euro could be launched by mid-2029, with parliamentary approval expected around May 2026. Cipollone emphasized that the digital euro will allow all Europeans to make free, universally accepted digital payments, even during major crises such as wars or cyberattacks.
The History of the Digital Euro
The idea of a digital euro first emerged in 2020, when the ECB introduced it as part of a broader strategy to develop central bank digital currencies (CBDCs). The initiative was a response to the growing popularity of digital assets and stablecoins, as well as the EU’s desire to reduce dependence on foreign payment systems like Visa and Mastercard.
In 2023, the ECB launched a two-year preparatory phase to build the necessary technical and legal foundations for the project.
The Current Status of the Project
As of October 2025, the ECB continues active preparations for the rollout of the digital euro, targeting a launch around 2029. This timeline, however, depends on the adoption of the required legal framework by the European Parliament and EU member governments. Amid rising geopolitical tensions and the growing dominance of USD-backed stablecoins in Europe, pressure is mounting on policymakers to accelerate progress.
From a technological standpoint, the digital euro will be built on distributed ledger technology (DLT) and support both online and offline transactions, free of charge for citizens. Analysts expect it could eventually account for up to one-third of all payment transactions in the eurozone—significantly reshaping the region’s financial landscape.
Legal Framework and Support
The successful rollout of the digital euro hinges on the creation of a comprehensive legal framework that establishes it as legal tender, on equal footing with physical cash. The European Commission has already proposed legislation to regulate key aspects—from issuance and distribution to user protection and transaction transparency.
The law will also define how digital euros are issued and circulated through banks and financial intermediaries. However, as of now, the European Parliament and national governments have not reached full agreement, posing a major challenge to the project’s timeline.
Nevertheless, given the digital euro’s strategic importance for the EU’s financial independence, legislative efforts are expected to gain momentum in the coming years.
Заключение
The digital euro represents a key step in the European Union’s modernization of its financial system amid global digital transformation. Its introduction promises to enhance financial security, lower transaction costs, reduce reliance on external payment networks, and strengthen Europe’s position in the global economy.
Ultimately, the project’s success will depend on the timely establishment of its legal foundation and effective coordination among EU member states. With a target launch date around 2029, the digital euro could mark the beginning of a new era for European finance.
