- The ECB aims to launch a digital euro by November 2025 to provide a public digital payment option across the euro area.
- The digital euro is designed for accessibility, inclusivity, and privacy, with offline use, basic free usage, and privacy protections.
- Rollout involves phases like research, design, and preparation leading to potential legislative approval and launch in late 2025
The European Central Bank (ECB) is pushing forward with plans to launch a digital euro, aiming to provide a pan-European digital payment solution. The proposed digital euro would complement cash and have cash-like features for digital transactions across the euro area.
ECB Rationale and Design
The ECB seeks to offer a public digital means of payment to make digital transactions more accessible. The digital euro is designed to be available offline, free for basic use, and respectful of privacy while having a pan-European reach. It would fill a gap in European digital payments and provide a standardized platform across the euro area.
Addressing Inclusivity Concerns
The ECB notes the digital euro would also be accessible via physical cards, with cash funding/defunding. Support would be available for users without bank accounts. Selected public entities would serve as intermediaries.
Privacy and Data Protection
Data protection and privacy are key priorities. Safeguards would ensure high data protection standards. Innovative privacy-enhancing techniques would also be adopted when ready.
Distribution and Governance
The digital euro would be distributed through supervised payment service providers (PSPs). A digital euro rulebook would establish standards to ensure harmonized service. PSPs would strengthen relations and innovate while allowing the ECB to maintain control.
Proposed Rollout Timeline
After initial research and design phases, the preparation phase runs 11/2023 – 10/2025. A potential
