The European Central Bank published a presentation by Executive Board member Piero Cipollone setting out the policy case, core design features and project timeline for a digital euro as a digital form of cash that would complement existing payment options. The material frames the initiative as a response to the shift toward digital payments and to structural dependencies in European retail payments, while aiming to provide pan-European usability, cash-like features and high privacy, including offline use. The presentation highlights that over two-thirds of card payments in the euro area are settled through international payment schemes and that 13 of 20 euro area countries lack a national card scheme, with non-European solutions also dominating mobile apps and e-payments alongside the rise of USD stablecoins. It describes proposed functionality across person-to-person, point-of-sale and e-commerce use cases via smartphones, a physical card and a web interface, using technologies such as NFC and QR codes. On privacy, it states the Eurosystem would not be able to identify people based on their digital euro transactions and that intermediaries would only access data needed to comply with EU rules, with offline payments designed so transaction details are known only to payer and payee and personal data subject to EU data protection law including the General Data Protection Regulation. Offline payments would require users to pre-fund and would work without an internet connection when parties are in proximity; further work is planned on enabling offline device-to-device payments and on pre-funding mechanics. Distribution would be carried out exclusively by payment service providers, which would maintain customer relationships, and the design would include safeguards to limit deposit outflows, including holding limits, (reverse) waterfall functionality and no remuneration of holdings, with calibration and impact analysis ongoing. The ECB’s timeline shows an investigation phase running from October 2021 to October 2023 and a preparation phase from November 2023 to October 2025, with next steps including finalising the scheme rulebook, selecting service providers, experimenting, and deepening technical work including offline functions and a testing and rollout plan. A next phase is envisaged from November 2025 to potentially develop and roll out use cases, while any decision to issue a digital euro would only be considered once the European Union legislative process has been completed.
European Central Bank 2025-04-07
European Central Bank sets out digital euro design choices and preparation phase roadmap to October 2025
The European Central Bank (ECB) detailed the policy rationale, design, and timeline for a digital euro to complement existing payments and enhance usability with cash-like features and privacy. It addresses the dominance of non-European payment solutions, ensuring privacy through EU data protection compliance. The timeline includes an investigation phase until October 2023, preparation until October 2025, and potential rollout post-November 2025, pending EU legislative approval.