What is the Digital Euro?

The digital euro is a proposed digital form of cash that would be issued by the European Central Bank (ECB) and made available to everyone in the euro area. It is a central bank digital currency (CBDC) — an electronic equivalent to banknotes and coins that would complement physical cash, not replace it.

Why is the digital euro being created?

The ECB and European institutions have identified several key reasons for developing a digital euro:

• Digitalisation of payments: As society becomes increasingly digital, Europeans need a payment option that keeps pace with modern technology.
• European payment sovereignty: Currently, 13 out of 20 eurozone countries rely on international card schemes for payments. The digital euro would create a European-owned payment infrastructure.
• Financial inclusion: A digital euro would be available free of charge, ensuring everyone can participate in digital payments regardless of their banking status.
• Resilience: Having a central bank-issued digital payment option provides a fallback if private payment systems fail.
• Strategic autonomy: Reducing dependence on non-European payment networks strengthens the EU's economic independence.

Key characteristics

• Issued by the central bank: Backed by the ECB, giving it the same trust as physical euro banknotes.
• Available to all: Any person or business in the euro area could use it.
• Free of charge: Basic use would be free for citizens — no fees for opening an account or making payments.
• Complements cash: Banknotes and coins will continue to be issued. The digital euro is an addition, not a replacement.
• Works online and offline: You could pay in a shop, online, or send money person-to-person, even without internet.

Who is behind the project?

The digital euro project is led by the Eurosystem — the ECB together with the national central banks of the 20 eurozone countries. The European Commission proposed the legislative framework in June 2023, and both the European Parliament and Council of the EU are working to adopt it.

The ECB aims to be ready for a potential first issuance of the digital euro during 2029, assuming the necessary EU legislation is adopted in 2026.

Is it a cryptocurrency?

No. The digital euro is fundamentally different from cryptocurrencies like Bitcoin:

• It is backed by a central bank with a mandate to maintain price stability.
• Its value is pegged 1:1 to the euro — it won't fluctuate like crypto.
• It is not mined or based on blockchain speculation.
• It serves as money, not an investment asset.

What happens next?

The project is currently in its preparation phase. Key upcoming milestones include:

• 2026: Final adoption of EU legislation enabling the digital euro.
• H2 2027: A 12-month pilot programme with selected payment service providers.
• 2029: Potential first issuance, if the Governing Council decides to proceed.

To track the full timeline, see our Timeline & Roadmap guide.