The European Central Bank (ECB) has announced its decision to advance to the next phase of the digital euro project. This follows the successful conclusion of the preparation phase that began in November 2023. The ECB’s Governing Council made this decision in response to a request from European leaders to expedite progress on the digital euro, as emphasized at the recent Euro Summit in October 2025.
Christine Lagarde, President of the ECB, said, “The euro, our shared money, is a trusted sign of European unity.” She added that efforts are underway to modernize euro cash and prepare for digital currency issuance. The move towards a digital euro aims to preserve Europeans’ freedom of choice and privacy while safeguarding Europe’s monetary sovereignty and economic security.
The ECB plans to implement preparations flexibly, aligning with calls from euro area leaders for readiness in potential digital euro issuance. However, any final decision on issuing a digital euro will depend on legislative adoption. If legislation is passed by 2026, pilot exercises could begin by mid-2027, with potential issuance slated for 2029.
Piero Cipollone, an ECB Executive Board member and chair of the High-Level Task Force on a digital euro, remarked that this initiative is “not just a technical project but a collective effort to future-proof Europe’s monetary system.” He highlighted that a digital euro would enhance payment resilience across Europe and offer new opportunities for innovation.
The Eurosystem’s ongoing preparations include developing technical foundations for the digital currency and engaging with market participants. It also involves supporting legislative processes by providing technical input to EU co-legislators. Estimated development costs until the first issuance are around €1.3 billion, with annual operating costs projected at approximately €320 million from 2029 onwards.
Research conducted by the Eurosystem indicates a need for simple and secure payment experiences among vulnerable consumers and small merchants. These findings support the ECB’s commitment to creating a digital euro that meets diverse needs while fostering financial evolution in Europe.
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