The European Central Bank has made a move in one of the most sensitive projects in its recent history. After two years of preparation, the organization has decided to move on to the next phase of the digital euro, the initiative with which it seeks to adapt public money to the era of electronic payments. It is not a launch, nor a final decision: if the European regulations are approved in 2026, there will be a pilot starting in 2027 and the Eurosystem wants to be ready for a possible first emission in 2029.
The decision comes after a preparation stage that began in November 2023, in which the ECB and the national central banks defined the technical and operational pillars of the project. In these two years, progress was made in the draft of the operating regulations, in the selection of technological suppliers and in tests with market participants. Political momentum has also been key: euro leaders called at the October 2025 summit to accelerate work to ensure that Europe retains its own capacity in digital payments.
A pilot to get out of paper. The announced step opens a phase aimed at validating that the system can work in practice, both from a technical point of view and from real use. The ECB talks about a pilot in which banks, technology providers, businesses and consumers would participate, with tests on payments in everyday situations and security controls. The objective is to verify that the digital euro, if it exists, can operate reliably and offer a simple experience for the user.
Despite the progress, this does not mean that the digital euro is ready for launch or that it will replace paper money. The institution emphasizes that the cash will continue to exist and that the project requires legislative support before any final decision. Furthermore, it is neither a decentralized token nor an experiment to displace the banking sector. The proposed architecture, they assure, maintains banks as the main access and operation channel for citizens and businesses.
Three points before starting. The digital euro roadmap is supported by three conditions: legislative progress, technical validation and the formal decision of the ECB later. The European Regulation will establish the rights, limits and obligations of the system, including the way in which financial institutions participate. In parallel, the architecture will be deployed in modules to adjust development as results are obtained. Nothing in this phase implies committing unlimited resources or guarantees the final emission.
A project that still needs to convince. Initial support for the digital euro is not homogeneous across Europe. In Germany, a survey carried out for the Bundesbank in April 2024 showed that half of citizens “could imagine using it” and that 41% were already aware of the project. In Spain, a study by Monitor Deloitte in 2024 indicated that 61% would not adopt it for now, largely due to lack of knowledge and satisfaction with current methods. At European level, a survey published by BEUC in 2025 indicated that privacy is a priority for 81% of respondents, along with security and the absence of commissions as essential elements.
From now on, progress will be as technical as it is political. As we say, the ECB wants to have the pieces ready for a pilot in 2027 and to consider a possible initial emission in 2029, provided that the European regulation is approved and tests confirm its viability. The process will be gradual and reviewable, and therein lies its importance: Europe is preparing for an option that could expand its autonomy in payments
Images | ECB | omid armin
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