The European Union is advancing the development of the digital euro, a project aimed at enhancing the EU's strategic autonomy in the digital age. The digital euro, a digital form of central bank money, is expected to be finalized by early 2026, with a potential launch in the following years.
The European Central Bank (ECB) initiated the digital euro project in July 2021. The goal is to create a digital version of cash, issued and guaranteed by the Eurosystem. The preparation phase, which began on November 1, 2023, focuses on establishing the technical and operational framework and selecting providers for the platform.
The digital euro aims to provide an accessible payment option across the Eurozone. It is expected to reduce reliance on external providers and strengthen the internal market's competitiveness. The project has sparked political debate, with some expressing concerns about financial stability and the potential replacement of cash.
The ECB hopes to finalize the policy framework by early 2026. Once legislation is approved, the launch of the digital euro could take an additional two to three years. The new payment tool will function similarly to cash, allowing secure online and offline payments.
The digital euro represents a significant step towards the EU's strategic autonomy in digital payments. Despite political and technical challenges, the initiative continues to gain momentum, aiming to offer European citizens and businesses a secure, efficient, and independent payment option.