Digital Euro
An open letter from over 60 economists published on Jan. 12, 2026 urges EU lawmakers to implement an effective digital euro, warning that failure to act could cede control of Europe’s money to foreign or private payment systems. The signatories say a well‑designed CBDC is needed to preserve monetary sovereignty and the transmission of policy.
Experts warn the digital euro’s success hinges on a political compromise between allowing cash-like privacy and building extensive online features that meet anti-money-laundering and oversight demands. The debate could determine adoption, design, and rollout timing across the EU.
The Council of the European Union has approved moving forward with the ECB’s digital euro project, endorsing both an online model and a privacy-focused offline variant. The decision clears a political hurdle toward pilots and technical development.
The EU Council on Friday endorsed a negotiating stance for a digital euro that would support both online and offline use, reversing earlier Parliament proposals that favored offline-only functionality. The decision moves the project into interinstitutional talks where technical, privacy and resilience trade-offs will be debated.
ECB President Christine Lagarde said the technical and preparatory work for a digital euro is complete and urged lawmakers to move quickly amid rising concern over global stablecoins. The appeal comes after the ECB's recent rate pause and frames the digital euro as a strategic priority.
On December 9, 2025 the ECB published a roadmap targeting pilot trials of a digital euro in 2027 and a first issuance by 2029 to complement cash and strengthen EU technological autonomy.
Italian banks support the ECB’s digital euro initiative but are asking for investment costs to be amortized over time, citing hefty upfront expenses. The ABI’s stance could shape implementation timelines and public-private cost-sharing models across Europe.