ECB Says Digital Euro Is Ready as Decision Shifts to EU Lawmakers
The European Central Bank (ECB) has completed the technical and preparatory work for a digital euro and is now awaiting political approval from the European Council and Parliament. ECB officials emphasize that systems and safeguards are in place, shifting the focus to legislative authorization. The digital euro would be a public, retail central bank digital currency (CBDC) with legal tender status, intended to ensure central bank money remains accessible in the digital age, bolster financial stability, monetary sovereignty, privacy, and inclusion, and strengthen Europe’s payments infrastructure. Unlike stablecoins, it would be a direct claim on the central bank, not backed by private reserves. Growing U.S. support for stablecoins and opposition to CBDCs—especially under the Trump administration—has added urgency to European deliberations, as policymakers fear reliance on private or foreign payment systems. Discussions now center on regulatory, technological, and implementation issues, with international institutions like the IMF warning that reliance on private digital currencies could undermine domestic monetary policy and stability. A launch of the digital euro is possible later this decade.
