The Governing Council of the European Central Bank (ECB) has announced its decision to advance to the next phase of the digital euro project.
Coming after the successful completion of the preparation phase, introduced by the Eurosystem in November 2023, the next phase is set to ensure technical readiness for the first issuance. Initially, the Eurosystem has focused on creating the foundations for issuing a digital euro.
Getting closer to the digital euro issuance
The Governing Council’s move falls in line with European leaders’ demand to accelerate the progress on the launch of the digital euro, as detailed at the October 2025 Euro Summit. According to the official press release, rolling out a digital euro is set to maintain Europe’s freedom of choice and privacy and safeguard the region’s monetary sovereignty and economic security. Additionally, if completed, the move will facilitate advancement in payments and support the competitiveness, resilience, and inclusivity of payments in Europe. The Eurosystem is set to implement its preparations flexibly, aligning with calls from euro area leaders for the Eurosystem to be prepared for a prospective digital euro issuance as soon as possible, while recognising that the legislative process has not yet been finalised.
After the legislation has been adopted, the Governing Council of the ECB will make its final decision on whether to issue a digital euro, and on what specific date. Assuming that European co-legislators will adopt the Regulation on the creation of the digital euro in 2026, a pilot exercise and initial transactions could happen as of the middle of 2027. By then, the entire Eurosystem should be prepared for a potential first issuance of the digital euro during 2029.
Furthermore, the digital euro is set to complement cash and deliver its benefits, including simplicity, privacy, reliability, and availability, to digital payments. Together with the Regulation on the creation of the digital euro, the ECB is supporting the European Commission’s proposal to solidify the right to pay with cash. The Eurosystem plans to centre its efforts on three main areas, including technical readiness, market engagement, and legislative process support.
For its development and operation, the final cost of a digital euro is set to depend on its final design, such as components and related services that require development. The preparation phase has resulted in total development costs of approximately EUR 1.3 billion until the first issuance. Subsequent operating costs are expected to reach nearly EUR 320 million per year from 2029. The Eurosystem will take on these costs, similarly to how it does for producing and issuing euro banknotes.
