The European Central Bank concluded its digital euro preparation phase and published a comprehensive report, setting the stage for a technical phase beginning on October 30, 2025, in the EU.
This marks a pivotal step in integrating a digital currency, potentially affecting stablecoin markets, requiring significant investment for stakeholders, and awaiting EU legislation for further progress.
The European Central Bank (ECB) has moved the digital euro project to the next phase as of October 30, 2025. This follows a two-year preparation phase, with progress detailed in a comprehensive report. Pilot programs could launch by 2027, dependent on EU legislation.
The ECB Governing Council has spearheaded advancements in the project’s phases, with strong backing from European political leaders. A significant decision is the planned incorporation of the digital euro as a complement to cash, requiring new legislative frameworks.
€4.0–€5.8 Billion Allocated for Digital Euro Infrastructure
Officials stress that the digital euro will not replace cash but will work alongside it. Such integration aims to strengthen the monetary system by offering consumers more choice in payment methods.
The ECB has detailed an expected financial commitment of €4.0–€5.8 billion for overall system upgrades. This aligns with projected technical capacity building needs, encompassing secure transaction systems and technical integration.
Past CBDC Trials Inform Digital Euro Strategy
Past CBDC trials, such as China’s digital yuan, indicate mixed impacts on crypto markets, with central digital currencies seen as distinct from decentralized assets. Previous experiments from countries like Sweden showcase similar approaches to their national contexts.
Experts predict the digital euro’s impact will become clearer post-legislation in 2026, with potential effects on stablecoin markets. Analysis suggests strong leadership is key to ensuring a smooth transition and integration into existing financial frameworks.
“The ECB summarises two years of work from November 2023 to October 2025, covering rulebook development, provider selection, experimentation, technical design, and stakeholder engagement.” – Christine Lagarde, President, European Central Bank
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