The European Central Bank is advancing a digital euro to reduce reliance on foreign payment networks and bolster resilience across the bloc’s retail payments.
Foreign dominance in euro payments
Non-European providers currently process 66% of card transactions in the euro area, leaving Europe exposed to external systems and their fees. Officials argue a public alternative could rebalance market power and improve continuity in crises.
Roadmap and resilience features
The ECB is targeting a digital euro rollout by 2029, with legislation expected by mid-2026. Executive Board member Piero Cipollone said the digital euro would enhance resilience by providing “spare capacity” in the financial system.
Key features under consideration include:
• An ECB-run app to help ensure service continuity during cyberattacks.
• Offline functionality to enable payments during power outages.
These design choices aim to lessen bottlenecks and reduce dependence on foreign rails. Final technical and policy details remain subject to legislation and testing.
What it means for users and providers
A digital euro could widen payment choice and potentially lower costs tied to external network fees. It may also provide a common standard that private firms can build on. The timeline and scope will depend on lawmakers and subsequent implementation.
For background on how fiat-linked digital money can work at scale, see this overview from the BIS. For a primer on tokenized money mechanics, see our guide on how stablecoins work.
