ECB Says Digital Euro Is Ready as Decision Shifts to EU Lawmakers
European Central Bank officials said Thursday that the institution has completed the technical and preparatory work needed to issue a digital euro, shifting the project’s fate squarely into the hands of European lawmakers as a formal review gets underway.
Speaking at the ECB’s final press conference of the year, President Christine Lagarde said the central bank has finished designing the systems and safeguards required for a retail central bank digital currency (CBDC), and is now awaiting political authorization from the European Council and the European Parliament.
“We have done our work, we have carried the water, but it’s now for the European Council and certainly later on for the European Parliament to identify whether the Commission proposal is satisfactory, how it can be transformed into a piece of legislation or amended,” Lagarde said.
The remarks confirm that the digital euro project has moved beyond research and infrastructure development and into a legislative phase that will determine whether, and how, the currency is ultimately issued. ECB officials emphasized that the focus is no longer on whether the technology works, but on securing political consensus around its legal framework and use.
Also read: Stablecoins Pose Little Threat to Europe, ECB Finds — But Warns Rapid Growth Needs Watching
A Retail Digital Currency With Legal Tender Status
The proposed digital euro is designed as a retail CBDC — a digital form of public money issued by the central bank and backed by the state, with the same legal standing as physical cash. Unlike stablecoins, which are issued by private entities and backed by reserves or corporate guarantees, a digital euro would represent a direct claim on the ECB.
According to the European Commission’s proposal, the digital euro would be a public, widely usable digital currency with legal tender status, aimed at supporting financial stability, monetary sovereignty, privacy, and financial inclusion. It is intended to complement, not replace, cash, while strengthening Europe’s payments infrastructure as physical cash usage declines.
Its core purpose, the proposal states, is to “ensure that central bank money with the status of legal tender remains available to the general public, while offering a state-of-the-art and cost-efficient payment means,” adding that the system could provide “a high level of privacy in digital payments.”
“Our ambition is to make sure that in the digital age, there is a currency that is the anchor of stability for the financial system,” Lagarde said.
Political Momentum Builds as Timelines Come Into Focus
The ECB’s comments arrive amid growing pressure from European institutions to clarify timelines.
Earlier guidance from European officials suggests that if the necessary legislation is passed by 2026, a pilot program could begin in 2027, with a potential full rollout across the eurozone around 2029.
Calls to accelerate the project have intensified as global digital payments and private digital money gain traction. Discussions around the digital euro date back to at least 2021, when European central bankers warned that failing to issue a public digital currency could leave monetary control increasingly dependent on private or foreign payment systems.
More recently, geopolitical developments have added urgency. In January, ECB Executive Board member Piero Cipollone cited shifts in U.S. policy — including a more permissive stance toward stablecoins — as a wake-up call for Europe to safeguard its monetary autonomy.
Lawmakers on both sides of the Atlantic have since moved quickly. In the U.S., early legislative efforts culminated with President Donald Trump signing the GENIUS Act into law in July. Trump, however, has taken a firm stance against CBDCs, repeatedly arguing that they would give governments excessive control over personal finances.
He reinforced that position by signing an executive order in January prohibiting federal agencies from establishing, issuing, or promoting a U.S. CBDC.
Public Money Versus Private Digital Alternatives
The contrast between U.S. and European approaches has sharpened debate over the role of public digital money. Earlier this month, the International Monetary Fund warned that private digital money, including stablecoins, could weaken domestic monetary policy and pose risks to financial stability if left unchecked.
European policymakers have also examined how a digital euro could coexist with public blockchains such as Ethereum and Solana. An ECB spokesperson previously said the proposed regulation is “technology neutral,” leaving room for interoperability while maintaining central bank control over issuance and settlement.
Also read: ESMA Could Become Europe’s Crypto Regulator Under New EU Proposal
With the technical groundwork complete, the digital euro’s future now hinges on political negotiations in Brussels and Strasbourg. As Lagarde made clear, the ECB stands ready — but the final decision will rest with Europe’s elected institutions.
