The European Central Bank is steadily moving toward the introduction of the digital euro. As recently reported, the launch of the new system is scheduled for 2029. A key feature of the digital euro is the ability to make offline payments. This means that transactions will leave no digital trace, ensuring a level of privacy necessary to compete with cash. The project has now moved from the design stage to the phase of technical implementation.
Phase one: research and strategy
The first stage lasted from October 2020 to October 2023. It focused on assessing feasibility and defining the key characteristics of the digital euro. During this phase, the fundamental principles for its implementation and use were established. These include maximum protection of user privacy, accessibility and ease of use for all social groups, and ensuring that the digital euro complements rather than replaces cash. The first phase was successfully completed with the approval of a solid strategic framework.
Phase two: practical design
The second stage covered the period from November 2023 to October 2025. It marked the transition from theoretical research to practical design. During this time, work focused on defining the functional and technical features of the digital euro, exploring pilot solutions, and establishing cooperation with banks and other payment service providers. A key achievement of this phase was the first release of the digital euro rulebook. This document outlines the main rules for its use and operation, as well as the roles and responsibilities of all participants in the digital euro ecosystem.
Phase three: technical implementation
The third stage runs from October 2025 to September 2027. It focuses on further development and operational preparation of the digital euro. Work is progressing in three main directions. First, advancing technical readiness through the development of infrastructure and standards. Second, preparing pilot testing. Third, strengthening cooperation with market participants to refine the rulebook. This phase is critical as it serves as a bridge between design and real-world implementation. Its goal is to ensure secure, reliable, and widespread operation of the digital euro across the eurozone.
Phase four: pilot program
The fourth stage is scheduled from September 2027 to September 2028. Provided that the legislative package for the digital euro is adopted by the end of 2026, a 12-month pilot program will be conducted. During this phase, selected payment service providers will collaborate with the Eurosystem to test the technical, functional, and operational readiness of the system in a controlled environment. Only after these stages will the path be clear for the official launch of the digital euro. The final decision will be made by the ECB Governing Council, but only after the relevant legislation comes into force.
Why this matters for Europe
The digital euro is of strategic importance for Europe’s future. It strengthens monetary sovereignty in the eurozone and enhances the resilience of the European payments landscape. The new currency provides a reliable public alternative to private payment solutions in the form of central bank money and supports innovation. In addition, the digital euro promotes financial inclusion by allowing all citizens to participate in the digital economy. For everyday users, this means the ability to pay digitally without internet access — like cash, but with the convenience of cashless payments.