The Governing Council of the European Central Bank (ECB) has considered the preparation phase of the digital euro that began in November 2023 to be over and has set a date for its entry into circulation: 2029.
The digital euro project started at the beginning of this decade continues to advance and has already passed the research and preparation phases. This currency, a full-fledged euro, will be an electronic form of money issued by the Eurosystem (the ECB and national central banks) that all citizens and companies could use. Like banknotes, but in digital format.
This digital euro, which many see as an alternative to cryptocurrencies, It will not replace cash, but will complement it. The Eurosystem will continue to ensure access to euro banknotes and coins throughout the euro area, but will ensure that citizens have access, free of charge, to a simple, universally accepted, reliable and risk-free means of payment.
New phase for the digital euro
The decision of the Governing Council to move to another phase is aligned with the request of European leaders to accelerate progress towards the digital euroas recently stated at the Euro Summit in October 2025. This currency will preserve the freedom of choice and privacy of Europeans and protect Europe’s monetary sovereignty and economic security. It will also promote innovation in payments and help make them competitive, resilient and inclusive.
The Eurosystem will carry out its preparations flexibly, heeding calls from euro area leaders to be ready as soon as possible for the possible issuance of the digital euro, while also taking into account that the legislative process is not yet complete.
«The euro, our common currency, is a symbol of confidence in European unity«declared Christine Lagarde, president of the ECB. «We are working to make its most tangible form – euro cash – fit for the future, redesigning and modernizing our banknotes and preparing for the issuance of digital cash..
To achieve this, the digital euro will complement cash and offer its advantages – simplicity, privacy, reliability and availability throughout the euro area – to digital payments. In addition to the regulation relating to the establishment of the digital euro, the ECB also supports the European Commission’s proposal to strengthen the right to pay with cash. The Eurosystem will focus on three main aspects:
- Technical preparation: develop the technical foundations of the digital euro, including initial system configuration and a pilot project.
- Market participation: Collaborate with payment service providers, merchants and consumers to finalize the regulatory code, conduct user studies and test the system through pilot activities.
- Support to the legislative process: continue to provide technical advice to EU co-legislators and assist the legislative process where necessary.
The ECB Governing Council’s final decision on whether or not a digital euro will be issued, and when, will be made after the legislation has been adopted. Assuming that European co-legislators adopt the regulation relating to the implementation of the digital euro in 2026, a pilot exercise and initial operations could take place as early as mid-2027.
The Eurosystem as a whole should be prepared for a possible first issuance of the digital euro in 2029.
