ECB President Christine Lagarde said the European Central Bank (ECB) aims to finalize preparations for a digital euro by October 2025, but its launch remains contingent on legislative approval and stakeholder cooperation.

EU Digital Euro Preparation Phase Targets October 2025, Launch Uncertain Amid Legislative Delays

The ECB is racing to complete the groundwork for a digital euro by October 2025, though the currency’s rollout faces delays pending legislative greenlights. “The deadline for us is going to be October of 2025, and we are getting ready for that deadline, but we will not be able to move unless the other parties, the stakeholders, as I call them, commission council and parliament, actually complete the legislative process without which we will not be able to move,” Lagarde stated.

Lagarde emphasized the urgency of the project, noting its relevance “both on the wholesale and on the retail level.” While Lagarde cited October 2025 as the preparation phase’s end, ECB documents outline a timeline concluding in November 2025. This phase, launched in November 2023, focuses on finalizing technical designs, legal frameworks, and gathering stakeholder feedback.

Post-preparation, the ECB’s Governing Council will decide whether to proceed, with analysts projecting a potential launch no earlier than 2028, according to Deutsche Bundesbank estimates. The digital euro will reportedly feature retail and wholesale components. The retail version, designed for public use, promises free basic transactions, offline functionality, and privacy protections barring transaction tracking by the ECB.

The wholesale arm targets financial institutions, leveraging blockchain for faster interbank settlements and cross-border payments. Both aim to complement existing euro payment systems while ensuring the fiat currency’s competitiveness amid rising digital currencies. Challenges persist, including privacy debates, concerns over commercial banks’ destabilization, and technical hurdles. Critics warn a retail digital euro could reduce bank deposits, prompting discussions on holding limits.

Meanwhile, the ECB assures high privacy standards to address surveillance fears. The ECB has been working with the Ethereum blockchain for the digital euro, based on tests by the European Investment Bank (EIB) and Banque de France. For instance, the EIB issued a digital bond on Ethereum, and the Banque de France used it for CBDC transactions. Other blockchain platforms have also been explored, but specific details are limited.

Globally, the ECB faces pressure from China’s digital yuan and U.S. stablecoin developments, intensifying calls for a digital euro to safeguard monetary sovereignty. China’s CBDC has come a long way, and research suggests China’s CBDC uses Chang’an Chain for blockchain-related functionalities, but its core transaction system is not built on blockchain. In the stablecoin arena, U.S. dollar-based cryptos have become a dominant force.

Lagarde framed the project as critical to maintaining the euro’s global standing. Despite progress, the digital euro’s fate rests on post-2025 legislative approvals, with stakeholders navigating complex regulatory and technical landscapes. Lagarde’s October 2025 deadline underscores the ECB’s urgency, but delays and the central bank’s own roadmap suggest a cautious path toward a 2028 launch.

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