What Is It?
The digital euro would be a liability of the European Central Bank — not a commercial bank or a private company. Unlike e-money, stablecoins, or bank deposits, it would carry the same legal tender status as physical euro banknotes.
This places it at the base of the European monetary stack. Its introduction raises fundamental structural questions: What happens to deposit funding at commercial banks? How do PSPs and card networks fit into a CBDC distribution model? And what does "programmable money" mean for payment product design?
These are the questions our research is designed to answer — as the project evolves.
Offline capability, privacy safeguards, holding limits, and programmability — the key architectural decisions under deliberation.
How banks and PSPs would distribute the digital euro, and what changes to their revenue models this entails.
The EU legislative proposal, its current status, and the open questions on legal tender status and holding caps.
What a successful CBDC rollout means for card schemes, wallets, stablecoins, and instant payment rails like SEPA Inst.
How a digital euro would interact with CBDCs in other jurisdictions and the implications for correspondent banking.
Project Timeline
Key milestones in the digital euro's development.
14 July 2021
The ECB Governing Council formally launched the digital euro project, opening the investigation work on its possible design and distribution.
28 June 2023
The European Commission published its legislative proposal establishing the legal framework for a potential digital euro, alongside the companion proposal on euro legal tender status.
1 November 2023
After concluding the investigation phase, the ECB launched a two-year preparation phase focused on rulebook development, provider selection, technical design, and experimentation.
30 October 2025
The ECB announced that the preparation phase had been completed and moved the project into a new phase centred on technical readiness, market engagement, and continued support for the legislative process.
2026 ← We are here
The digital euro has not yet been approved for issuance. The EU legislative process is still ongoing, while the ECB continues technical and operational preparations.
2027–2029 (conditional)
If the legislation is adopted in 2026, a pilot could begin in 2027, with the Eurosystem aiming to be ready for a potential first issuance during 2029.
Open Questions
The digital euro project is still evolving. These are the structural questions that will determine its ultimate impact.
The ECB has indicated a holding cap (potentially €3,000) to prevent large-scale flight from bank deposits. Whether this is sufficient and enforceable is contested.
The ECB has committed to "high privacy" but not full anonymity. The technical design, which intermediary sees what, and when, remains one of the most contentious design decisions.
The ECB's distribution model relies on commercial intermediaries, but the fee model for distributing a zero-interest CBDC is unresolved. This is a critical open question for the industry.
The ability to attach conditions to digital euro transfers while offering commercial opportunity raises fundamental questions about monetary sovereignty and the political economy of money.
We publish analysis as the project develops. Get in touch to be notified of new research.