The European Central Bank has published the closing report on the Eurosystem’s two-year digital euro preparation phase, concluding that the phase’s key deliverables have been completed and confirming a move to a new project phase focused on building technical capacity ahead of any possible issuance. Following a Governing Council decision on 29 October 2025, work will continue on a flexible basis aligned with the EU legislative process, with any decision on whether and when to issue a digital euro to be taken only after the relevant Regulation is adopted. The report highlights delivery of a comprehensive draft digital euro scheme rulebook (a single set of rules, standards and procedures for basic digital euro payments services by participating payment service providers), including a market consultation via the Rulebook Development Group that concluded at the end of October 2025. It also confirms the selection of providers for five externally procured components of the digital euro service platform under framework agreements (with no financial commitments at this stage) and the internal sourcing of core components from a group of six Eurosystem national central banks. For planning purposes, the ECB estimates total development costs of around EUR 1.3 billion until a first issuance (currently expected during 2029) and annual operating costs of approximately EUR 320 million per year from 2029, alongside an assessment that banking sector investment costs could range between EUR 4 billion and EUR 5.8 billion; it also reports technical analysis requested by co-legislators indicating that hypothetical holding limits between EUR 500 and EUR 3,000 per person would not harm financial stability, including under a highly conservative flight-to-safety scenario. Looking ahead, the next phase centres on three workstreams: advancing technical readiness (including system set-up and piloting), deepening market engagement (including finalising the rulebook in line with legislative developments), and supporting the legislative process. The ECB’s readiness objective assumes adoption of the Regulation in the course of 2026, with pilot activity and initial transactions potentially starting as soon as mid-2027 and a potential first issuance during 2029.
European Central Bank 2025-10-30
European Central Bank moves digital euro project into next phase and targets 2029 readiness for potential first issuance
The European Central Bank has concluded the Eurosystem’s two-year digital euro preparation phase, moving to a new phase focused on building technical capacity. The ECB estimates development costs of EUR 1.3 billion until a first issuance, expected in 2029, with annual operating costs of EUR 320 million. The next phase will advance technical readiness, deepen market engagement, and support the legislative process, with pilot activities potentially starting mid-2027.