The ECB Governing Council closed the digital euro's two-year preparation phase in October 2025 and approved progression to the next project phase. The decision moves the digital euro from design and specification work into concrete implementation planning.
Implementation Timeline
A call for expressions of interest from European payment service providers will launch in 2026, selecting institutions for a pilot exercise expected in the second half of 2027. The European Commission's legislative proposal is expected to advance through the EU co-legislative process in 2026. First issuance - the earliest point at which the digital euro could be available to the public - is targeted for 2029.
Design Decisions
The preparation phase settled key design questions: the digital euro will be distributed through banks and payment service providers (preserving the two-tier monetary system), with holding limits to prevent bank disintermediation. Offline payment capability is included for privacy and resilience. The ECB confirmed it would not use the digital euro as a monetary policy tool.
What This Means
The digital euro is the most advanced CBDC project among major reserve currency central banks. While 2029 remains distant, the progression from preparation to active PSP engagement is significant - it means the ECB is committing institutional resources, budget, and legal framework development. For European banks and payment providers, the PSP selection process beginning in 2026 makes the digital euro a near-term strategic consideration rather than a theoretical exercise.