The European Central Bank published a closing report on the Eurosystem’s two-year digital euro preparation phase and confirmed that its core deliverables have been completed, including work on the scheme rulebook, provider selection, experimentation and technical design. It also notes that the ECB Governing Council decided on 29 October 2025 to continue preparations and move to the next phase to build technical capacity ahead of any possible issuance, while remaining aligned with the EU legislative process. The Eurosystem aims to be ready for a potential first issuance during 2029, with any decision on whether to issue and on timing to be taken only after the legislative act is adopted. Key outputs described in the report include a new comprehensive draft digital euro scheme rulebook for participating payment service providers, covering functional and non-functional requirements, minimum user experience and dispute management, alongside detailed implementation specifications, with a four-month market consultation on the June 2025 draft concluded at the end of October 2025. Procurement for the digital euro service platform progressed through five tender procedures with framework agreements signed with the top two ranked bidders per component, complemented by a Eurosystem internal selection of six national central banks to provide core clearing and settlement and issuance components. The ECB also reports experimentation via an innovation platform involving around 70 market participants, ongoing user research that found 66% of respondents were interested in trying a digital euro, and further technical work on offline payments, privacy-preserving architecture and holding-limit calibration, including analysis requested by co-legislators testing hypothetical holding limits from EUR 500 to EUR 3,000 per person. Estimated total development costs are around EUR 1.3 billion until a first issuance, with projected annual operating costs of approximately EUR 320 million per year from 2029, while the ECB’s assessment of banking sector investment costs ranges from EUR 4 billion to EUR 5.8 billion. The next phase will focus on three workstreams: advancing technical readiness including piloting, deepening market engagement including further testing and finalising the rulebook in line with legislative developments, and supporting co-legislators through continued technical input. The report envisages a pilot exercise and initial transactions potentially starting as soon as mid-2027, and a modular approach intended to limit financial commitments while legislation remains under negotiation.
European Central Bank 2025-10-30
European Central Bank closes digital euro preparation phase and moves project to next phase aiming for potential issuance in 2029
The European Central Bank (ECB) has completed the Eurosystem’s two-year digital euro preparation phase, finalizing key deliverables like the scheme rulebook and provider selection. The ECB Governing Council will now focus on technical capacity building and aligning with EU legislative processes, aiming for issuance readiness by 2029. This phase includes piloting, market engagement, and legislative support, with estimated development costs of EUR 1.3 billion and annual operating costs of EUR 320 million from 2029.