The Digital Euro – the European Central Bank Digital Currency is taking Shape

The digital euro is getting closer step by step. While the political framework is being negotiated at European level, the European Central Bank (ECB) is already working intensively with market participants on the technical foundations. The goal: a central bank digital currency that makes Europe’s payment transactions more secure, efficient and future-proof. We take a look at the current status and the next stages of the digital euro.

The digital euro – a major European project with a clear direction

Since the European Commission presented its draft legislation for the digital euro in June 2023, the coordination process between the Council, Parliament and Commission has been underway. As with all major EU projects, this process takes time. Not least because the 2024 European elections have led to personnel and organizational changes.

The European Parliament’s Committee on Economic and Monetary Affairs is currently expected to adopt a position by May 2026. The original ECB timetable, which envisaged the conclusion of the legislative process as early as October 2025, can therefore not be adhered to.

Nevertheless, the goal remains clear: once the final law has been passed, the digital euro could become a reality within two to two and a half years – i.e. probably in the course of 2029.

Innovation in practice – we are helping to shape the future

Parallel to the legislative process, the ECB is developing the technical aspects of the digital euro. Banks, technology partners, and other market participants, including msg for banking, were involved via an innovation platform to test at an early stage how the new currency could work in practice.

The focus was on how conditional payments – i.e., transactions that are executed automatically when certain conditions are met – can be implemented technically. The innovation platform thus serves as a bridge between concept and implementation – a crucial building block for integrating technological feasibility, market requirements, and regulatory expectations at an early stage.

Together with other participants in the innovation platform, we were able to gain valuable experience and help turn theoretical concepts into tangible solutions. The results were presented at the Bocconi Conference on the Future of Payments in Milan at the end of September 2025, among other venues. Discussions with experts from academia, supervisory authorities, and the financial sector highlighted the strong interest in the digital euro and its enormous potential. As a result, the ECB has decided to launch a second phase of experiments to further explore the innovation potential of the digital euro. The new activities are scheduled to start in the first half of 2026 and will further deepen cooperation with market participants.

You can find more information on the findings from the innovation platform here.

Technical foundations are being laid

Work on the infrastructure is also progressing at the ECB. An important milestone was reached in October 2025 with the announcement of the service providers for key system components such as the alias name function, risk and fraud management, the app, and offline payment functionality.

The technical platform is taking shape, including the development of offline solutions, security architectures, and a binding set of rules. As soon as Brussels gives the green light for the development of the digital euro, the providers will set about building the central infrastructure. All this progress shows that the digital euro is not a distant future prospect, but is already in the early stages of implementation.

Outlook – well on the way to a digital future

Even though the path remains complex and timelines are shifting, the momentum prevails. The European financial world is in the midst of a decisive transformation phase – and the digital euro is a central part of it. As participants in the ECB Innovation Platform, we are seeing concepts turn into real applications. These experiences are essential for building trust and setting the course for a successful launch.

Our conclusion: The digital euro has long been more than just a political project. It is a shared learning environment where regulation, technology, and banking practice come together. If politics and the market continue to work together so constructively, Europe could have a digital central bank currency in a few years that is not only secure and efficient, but also impressively reflects Europe’s spirit of innovation.