Digital Euro: A New Phase Begins

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Published on 06/11/2025

The digital euro project has entered a new phase, following a decision by the European Central Bank (ECB)'s Governing Council on 30 October in Florence.

The digital version of our currency is taking a significant step towards making the digital euro a more tangible and operational reality. The aim is to lay the foundations for a public digital means of payment that is secure, reliable, and widely accepted across the euro area. The digital euro would complement cash, not replace it, and would contribute to strengthening Europe's monetary sovereignty.

The new phase: building and testing the infrastructure

The two-year preparatory phase was focused on refining the digital euro's technical features and operational rules, as well as on selecting potential providers for the infrastructure. In the following two years the ECB, together with national central banks and selected private-sector partners, will test the systems that could support the digital euro, if actually issued. Readiness, experimentation, and collaboration are the three words that better describe this new phase.

The new phase has been designed to ensure that the Eurosystem is ready to launch a pilot project in 2027, with a view to a possible issuance of the digital euro by 2029. However, the pilot project should start only after the European Parliament and the Council of the European Union have completed the legislative process. The adoption of the Digital Euro Regulation is expected by the end of next year after the ECB has taken the final decision on whether to issue the digital euro or not.

Key Activities

During the new phase:

• the development of technical components, the initial set-up of the system and the digital euro pilot exercise will begin to ensure the Eurosystem is technically prepared for a potential issuance;
• technical support will continue to be provided to co-legislators, enabling them to make informed decisions during the legislative process;
• the digital euro rulebook will be finalised in close cooperation with market stakeholders.

The activities will be organized into modular components, allowing for a gradual and flexible implementation. This approach is designed to limit financial commitments and align progress with the legislative timeline.

A Crucial Milestone

The beginning of the new phase represents a pivotal moment in the project. It moves beyond defining principles and features, focusing instead on ensuring the technical preparedness that could bring cash into the digital age. While the project remains subject to legislative decisions, the technical work underway aims to ensure that, should the digital euro be approved, the Eurosystem will be ready to introduce it in a secure, reliable, and market-oriented manner.