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The digital euro represents one of the most ambitious initiatives of the European Central Bank (ECB) to adapt the single currency to the digital age. This central bank digital currency (CBDC) project aims to offer citizens and businesses in the eurozone a public alternative to the private means of payment that currently dominate the European market.
On 29 October 2025, the Governing Council of the ECB took a major step forward by launching a new phase of the project, thus completing the preparatory phase that began in November 2023. This phase made it possible to establish the technical and regulatory foundations essential to the future deployment of this digital currency.
If the European regulation is adopted by the co-legislator in 2026, a pilot project could be launched as early as mid-2027, with gradual deployment starting in 2029. This ambitious schedule testifies to the European desire to accelerate the digital transformation of its payments system.
International card networks represented 69% of card payments in the eurozone in the second half of 2024, illustrating a worrying dependence on non-European players such as Visa and Mastercard. The digital euro aims to strengthen European strategic autonomy in payments.
In France, the use of cash has increased from 68% of in-store transactions in 2016 to only 42% in 2024. This transformation of payment habits justifies the development of a complementary digital public solution.
The digital euro would function as a digital wallet managed by commercial banks and other authorized service providers, allowing users to make instant payments anywhere in the eurozone. The system would be based on a public-private partnership where the ECB issues the currency while private actors ensure distribution and customer relationships.
A major innovation of the project concerns the possibility of making payments without an Internet connection. This feature would ensure the resilience of the system in the event of a network outage and would provide a level of confidentiality comparable to physical cash.
Conditional payments, which are executed automatically when certain predefined conditions are met, have been identified as a key driver of innovation. For example, funds could only be paid to a seller after delivery has been confirmed by the buyer.
The ECB and the Eurosystem would not be able to identify users or know what they are buying based on payment data. This protection of privacy is a major argument in convincing citizens to adopt this new currency.
A study conducted with 19,000 people in 11 countries shows that 55% of respondents do not want to adopt this CBDC for their daily payments. Citizens express legitimate concerns about surveillance and privacy.
Suppliers have been selected to contribute to the implementation of the platform, including private companies and six national central banks. Major banking institutions such as BNP Paribas, Société Générale, Société Générale, HSBC and JPMorgan are participating in the experiments.
A draft code of rules defines common standards to ensure that the digital euro would work consistently across the eurozone, covering payment execution, user protection, and financial inclusion.
Nearly 70 market players, including retailers, fintech companies, start-ups and banks, participated in the first iteration of the innovation platform in 2024. The results highlight the potential of the digital euro to stimulate innovation and strengthen financial inclusion.
In June 2023, the European Commission sent a proposal for a regulation to the European Parliament and the Council of the European Union. This text establishes the legal framework necessary for the deployment of the digital euro.
The Parliament is currently at an impasse, and in December 2024, the rapporteur Stefan Berger resigned from his post. These political difficulties are delaying the progress of the project despite the technical support of the ECB.
The digital euro is in no way intended to replace cash. The European authorities are committed to maintaining the availability of notes and coins. Moreover, France is investing more than 250 million euros in a new cash printer in Puy-de-Dôme, demonstrating the sustainable commitment to physical money.
ECB executive board member Piero Cipollone assured that the digital euro will be profitable for payment service providers, responding to banking sector concerns about the implementation costs estimated between 4 and 5.8 billion euros.
The digital euro is raising fears among part of the European population. False information is circulating on social networks, in particular concerning an alleged ban on cash or the widespread surveillance of transactions.
Unlike decentralized cryptoassets, the digital euro would be issued and guaranteed by the ECB, ensuring its stability and convertibility into physical euros at any time. It is also different from the private stablecoins backed by the dollar that are gaining in popularity.
Faced with the digital yuan tested by China in several major cities and the dollar stablecoins that are proliferating, Europe is seeking to maintain monetary sovereignty and the international role of the euro. This competitive context accelerates the work of the ECB.
Qualitative and quantitative consultations are planned with specific groups such as small retailers and vulnerable consumers. The results, expected in mid-2025, will make it possible to refine the value proposition of the digital euro.
The ECB is working on the methodology for calibrating holding limits for digital euros. These ceilings aim to maintain financial stability by avoiding massive transfers from traditional bank deposits to digital euro accounts.
New phases of experimentation are planned to test conditional payments and other innovative use cases, in partnership with market players. Special attention is paid to interoperability with the TARGET 2 platform and blockchain technologies.
The digital euro is much more than just technological innovation. It is a strategic choice for European autonomy in the face of the dominance of American payment giants and the emergence of foreign MNBCs. While the technical and political challenges remain significant, the ECB is methodically continuing its preparations for a potential launch in 2029.
The success of this project will depend on its ability to convince European citizens of its advantages in terms of security, confidentiality and practical usefulness. Harmonious coexistence with cash and private solutions will also be crucial to ensure free choice for consumers.
