The European Central Bank (ECB) aims to have all key political decisions in place by early 2026 to pave the way for launching a digital euro, ECB Executive Board Member Piero Cipollone said on Thursday. Once the necessary legislation is finalized, the ECB expects it would take two to three years to launch the digital currency.
Although the ECB has been exploring a digital euro for several years, progress has been slow due to the absence of a proper legal framework. Cipollone expressed hope that EU political consensus could be reached before summer 2025, with additional legislative work by the European Parliament extending into early 2026.
Key Features of the Digital Euro:
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Provides consumers with a direct claim on the ECB, unlike current card payments through private providers like Visa or Mastercard.
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Designed to function similarly to cash, offering high security and offline payment options.
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Supports both online and in-person transactions, enhancing digital resilience and financial sovereignty.
Strategic Context:
The urgency behind the initiative has increased due to geopolitical developments, particularly following the election of Donald Trump, which has heightened concerns over European dependence on U.S.-based digital payment infrastructure. Europe currently relies heavily on American financial firms, posing a potential strategic vulnerability.
French central bank governor François Villeroy de Galhau, also speaking at the event, noted that recent political shifts, such as Trump’s return to office, have strengthened the ECB’s resolve to press ahead with the digital euro project.
If launched successfully, the digital euro would position Europe among the global leaders in central bank digital currencies (CBDCs), alongside initiatives already underway in China and the United States.