The European Central Bank published an overview of the proposed digital euro, describing it as a cash-like complement to existing payment methods and a public good that would be widely accessible and accepted across the euro area. The material positions the project as a way to provide a secure digital payment option with cash-like features and to strengthen Europe’s payments system, including by reducing dependence on non-European means of payment. The ECB sets out a concept designed for everyday payments, enabling secure, real-time transactions in stores and online, as well as person-to-person transfers, with functionality intended to work offline when there is no internet or mobile service. It notes that any place accepting debit or credit card payments, in physical stores or online, would also accept digital euro, and that it could be used across devices such as mobile phones, smartwatches, digital wallets and computers. The explainer also states that the ECB would not be able to determine a user’s identity or payment habits from digital euro transactions, that a digital euro would be legal tender with guaranteed value, and that conversion between digital euro and cash would be possible at cash machines. To manage holdings, the ECB indicates there will be a limit on how much can be held in a digital euro account, with any incoming amount that exceeds the limit automatically transferred to a linked current account, or the transaction declined if no account is linked. Access is described as possible via banks and other payment service providers integrating digital euro into existing apps, alongside an ECB-provided app; the explainer also outlines an option for people without a bank account and/or digital device, such as a payment card distributed and topped up via public agencies like post offices, and reiterates that the digital euro is intended for payments rather than investment or earning interest.
European Central Bank 2025-05-19
European Central Bank publishes digital euro explainer outlining offline use, privacy safeguards and holding limits
The European Central Bank (ECB) outlined the proposed digital euro as a secure, cash-like digital payment to enhance Europe's payment system. It would enable real-time transactions, be accepted where cards are used, and maintain user privacy. The ECB plans to limit holdings, transferring excess to linked accounts, and offers access through banks, payment service providers, and an ECB app.