The European Central Bank (ECB) Governing Council has decided to advance to the next phase of the digital euro project, following the successful completion of the preparation phase launched in November 2023.
The move comes in response to European leaders’ call at the October 2025 Euro Summit to accelerate work on the initiative.
The ECB said the digital euro will help preserve Europeans’ freedom of choice and privacy, strengthen monetary sovereignty, and promote innovation and resilience in payments.
Preparations will proceed flexibly and remain aligned with the legislative process.
The final decision on whether to issue a digital euro will only be made once legislation is adopted.
If the Regulation is approved in 2026, pilot transactions could begin by mid-2027, with a potential first issuance in 2029.
“The euro, our shared money, is a trusted sign of European unity,”
said ECB President Christine Lagarde.
“We are working to make its most tangible form, euro cash, fit for the future.”
As cash use continues to decline, the ECB said a public digital means of payment has become increasingly necessary.
The digital euro would complement cash, offering similar benefits – simplicity, privacy, and reliability – in digital form.
The next phase will focus on three areas: developing technical infrastructure, engaging with payment providers, merchants, and consumers, and supporting the legislative process through technical input.
Development costs are estimated at about €1.3 billion until 2029, with annual operating costs of around €320 million thereafter.
The ECB said these costs, borne by the Eurosystem, are comparable to those of issuing banknotes and will be offset by seigniorage revenues.
The preparation phase produced key deliverables, including a draft rulebook, selection of service providers, and pilot collaborations with market participants.
Findings indicated that the digital euro could enhance competition, lower merchant costs, and support a simple, secure user experience.
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