The European Central Bank (ECB) Governing Council has decided to move to the next phase of the digital euro project following the successful completion of the preparation phase that began in November 2023. This phase ensures technical readiness for the first issuance of a digital euro.
If EU legislation is adopted in 2026, a pilot exercise could start in 2027, with the Eurosystem ready for a potential first issuance in 2029. The digital euro aims to preserve Europeans’ choice and privacy, strengthen monetary sovereignty, foster innovation in payments, and ensure a competitive, resilient, and inclusive European payment system.
The project focuses on three areas:
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Technical readiness: developing the digital euro’s infrastructure, system set-up, and pilot testing.
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Market engagement: working with payment providers, merchants, and consumers to finalize rules and test the system.
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Legislative support: providing technical input to EU co-legislators.
Key achievements of the preparation phase include drafting the digital euro rulebook, selecting component providers, running an innovation platform, and analyzing the digital euro’s role in the payment ecosystem. Findings indicate it could enhance competition and accessibility across Europe.
Costs for development are estimated at €1.3 billion until first issuance, with annual operating costs around €320 million from 2029, expected to be offset by seigniorage, similar to banknotes. Safeguards are designed to minimize financial stability risks.
Extensive user research shows a need for a simple, secure, and reliable digital payment solution. The digital euro is intended to complement cash, benefit citizens and merchants, and support Europe’s financial evolution.
