ECB sets October 2025 deadline for digital euro readiness

The European Central Bank (ECB) aims to complete preparations for a digital euro by October 2025, though its rollout remains uncertain due to pending legislative approval.  

“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,” ECB President Christine Lagarde stated.

The preparation phase, which began in November 2023, focuses on technical design, legal frameworks, and stakeholder engagement.

While Lagarde cited October 2025 as the completion date, ECB documents suggest the phase will conclude in November 2025.  

Following this phase, the ECB’s Governing Council will determine whether to proceed, with analysts, including those from Deutsche Bundesbank, suggesting a potential launch around 2028.  

The digital euro is expected to include retail and wholesale components.

The retail version would enable public use with free basic transactions, offline functionality, and privacy protections.

The wholesale version aims to facilitate interbank settlements and cross-border payments using blockchain technology.  

Privacy concerns and potential effects on commercial banks remain key challenges.

Critics argue that a retail digital euro could impact bank deposits, prompting discussions on holding limits.

The ECB has stated that high privacy standards will be implemented to address concerns over transaction monitoring.  

According to ECB research, blockchain platforms, including Ethereum (CRYPTO:ETH), have been tested for the digital euro.

The European Investment Bank (EIB) has issued a digital bond on Ethereum, and the Banque de France has used the network for central bank digital currency transactions.  

The ECB faces increasing competition from China’s digital yuan and U.S. stablecoins, which have raised concerns about monetary sovereignty. Lagarde emphasized the importance of the digital euro in maintaining the euro’s position in global finance.