ECB Advances Digital Euro Project to Preparation Phase

TLDR

• ECB’s Governing Council decided on October 30, 2025.
• External development costs estimated at €265 million until issuance.
• First issuance of digital euro could occur in 2029.

The European Central Bank (ECB) has moved the digital euro project to its preparation phase. This development follows the completion of an investigation phase. The decision was made by the ECB’s Governing Council on October 30, 2025. It is important to note that the European Union (E.U.) Council has not yet approved the final issuance of the digital currency, as legislative processes are still ongoing. If the legislation is adopted, the potential first issuance could be in 2029. [1]

ECB President Christine Lagarde and ECB Executive Board member Piero Cipollone highlighted the significance of the digital euro. Lagarde stated, “The euro, our shared money, is a trusted sign of European unity. We are working to make its most tangible form – euro cash – fit for the future, redesigning and modernising our banknotes and preparing for the issuance of digital cash.” Cipollone emphasized the project’s collective nature, saying it would enhance Europe’s payment landscape’s resilience and lower costs for merchants. [Diplomacy.edu homepage for international relations and diplomacy resources]

Technical and Market Aspects of the Digital Euro

The Eurosystem, comprising the ECB and national central banks, is responsible for the technical readiness of the digital euro. This involves engaging with payment providers and securing legislative support. The ongoing phases since 2020 – 2023 have included drafting rules and selecting providers. External development costs are estimated at around €265 million until the potential issuance.

According to the project overview, no direct impacts on cryptocurrencies like ETH or BTC have been observed. The digital euro is intended as a public complement to cash for retail payments. It focuses on privacy, offline functionality, and monetary sovereignty. Key measures include holding limits to protect financial stability. The Council of the E.U. has agreed on a negotiating stance for enabling legislation, which includes privacy measures and support for cash. These do not equate to final approval.

Previous and Parallel Developments

The preparation phase began in November 2023, leading to this current advancement in October 2025. The investigation phase from 2020 to 2023 successfully tested designs and market fit without moving to issuance. In October 2025, Euro Summit leaders encouraged speeding up the project’s progress in line with legislative discussions. [Privacy policy for the diplomacy education website]

No primary source statements from key figures in the cryptocurrency community, such as Arthur Hayes, Vitalik Buterin, or other community platforms, were available at the time of this announcement. The digital euro project aims to strengthen euro area payment resilience without influencing crypto assets, DeFi protocols, or similar tokens.