The ECB said on March 27 that banks risk losing payment market share to stablecoins and urged the launch of a digital euro to preserve their role in the payments system.
The European Central Bank has set a mid-2026 deadline to finalise EU-wide standards for the digital euro, giving financial service providers time to adapt systems ahead of any issuance decision.
The ECB has begun work to map how a digital euro would operate on existing ATMs and payment terminals, with a focus on enabling offline transactions and ensuring interoperability.
UniCredit CEO Andrea Orcel said a digital euro could erode banks' liquidity and profit margins by diverting retail deposits, while describing the initiative as "relatively constructive."
EU authorities are advancing plans for a digital euro with a likely launch in 2029, aiming to compete with stablecoins and global card networks. The move could reshape payments, cut fees, and reinforce European financial sovereignty.
A senior European Central Bank policymaker warned that implementing a digital euro could shave €4–6 billion off European banks’ revenues over a four-year rollout. The estimate underscores potential disruption to bank business models as policymakers design the retail CBDC.
Reports that ECB President Christine Lagarde is considering an early exit arrive as the EU advances key decisions on the digital euro. The potential leadership change raises questions about continuity in design, timing and regulatory stance.
ECB policymaker Cipollone said the digital euro will be structured to protect European card networks and keep banks central to the euro-area payments system, aiming to preserve incumbent infrastructure and stability.
The European Parliament on Tuesday endorsed the European Council’s negotiating position for a digital euro that can operate both online and offline. The vote represents the Parliament’s first significant approval and moves the project closer to inter-institutional talks on a central bank digital currency.
The ECB is targeting a 2029 launch for a pan-European digital euro as lawmakers move forward; official Cipollone has been addressing banking concerns and privacy safeguards. The push aims to balance innovation in payments with financial stability and data protection.