The European Central Bank published its closing report on the Eurosystem’s two-year digital euro preparation phase, confirming that the Governing Council has decided to continue preparations and move into a next phase focused on building technical capacity ahead of any possible decision to issue. The ECB’s planning assumption is to be ready for a potential first issuance during 2029, while keeping work aligned with the EU legislative process. Key deliverables reported include a new comprehensive draft digital euro scheme rulebook for participating payment service providers, following a four-month market consultation that concluded at the end of October 2025, and the completion of provider selection for five Digital Euro Service Platform components via framework agreements that do not yet entail financial commitments. Core issuance, clearing and settlement components were allocated to a group of six Eurosystem national central banks, and experimentation work was advanced through an innovation platform involving around 70 market participants testing and proposing use cases such as conditional payments. The report also sets out technical progress on offline payments (including secure element options such as embedded secure elements and eSIMs), privacy-preserving system architecture, accessibility measures for the digital euro app, and a methodology for calibrating holding limits, alongside technical analyses shared with co-legislators including scenarios for holding limits between EUR 500 and EUR 3,000 and estimated banking-sector investment costs of EUR 4 billion to EUR 5.8 billion. Total development costs to first issuance are estimated at around EUR 1.3 billion, with annual operating costs projected at approximately EUR 320 million per year from 2029. In the next phase, work is structured around advancing technical readiness (including piloting), deepening engagement with PSPs, merchants and consumer representatives, and continuing to support the legislative process; a pilot and initial transactions could start as soon as mid-2027. Any Governing Council decision on whether to issue a digital euro, and on timing, is explicitly contingent on adoption of the Regulation on the establishment of the digital euro, assumed in the report to occur in the course of 2026.
European Central Bank 2025-10-30
European Central Bank moves the digital euro project into a next phase and targets potential first issuance in 2029
The European Central Bank (ECB) has concluded the Eurosystem’s two-year digital euro preparation phase and will now focus on building technical capacity for potential issuance by 2029. Developments include a draft rulebook, provider selection for service components, and progress on offline payments and privacy architecture. The next phase involves advancing technical readiness, engaging stakeholders, and supporting legislation, with a pilot and initial transactions potentially starting by mid-2027, contingent on regulatory adoption expected in 2026.