The European Central Bank (ECB) has announced, through its president Christine Lagarde, that it has completed the preparatory phase of the digital euro project. This milestone marks an important step forward, as responsibility for the project now shifts to European lawmakers, who must decide on its legislative approval.
The ECB completes the project’s preparatory phase
At the ECB’s end-of-year press conference, Lagarde confirmed that all assessments related to the preparatory phase had been finalised.
“We have done our job. It is now up to the European Commission, the European Parliament, and the Council of the European Union to decide whether to move forward,” she stated.
She also emphasised the importance of the digital euro as a cornerstone of financial stability in the digital age, highlighting its role in preserving the central bank’s monetary anchor in an increasingly digital financial environment.
“We want to ensure that our currency remains the anchor of the financial system in the digital era. Central bank money currently exists in physical form, as banknotes. This anchor must also exist in digital form to support the stability of the financial system,” Lagarde explained.
Her remarks underscore the ECB’s intention to ensure continuity between physical and digital forms of central bank money, while reinforcing Europe’s monetary sovereignty.
Will the digital euro be launched in 2029?
Following the preparatory phase, which ran from November 2023 to October 2025, the ECB plans to move forward with the technical implementation phase. This stage will involve infrastructure development, testing, and pilot programmes, with key milestones expected around 2027.
If the legislative framework is approved by European lawmakers in 2026, the digital euro could be introduced as early as 2029, with a gradual rollout across the eurozone.
In its latest progress report, the ECB confirmed its continued commitment to the project:
“The digital euro project is progressing steadily, supported by European institutions and Member States. Building on the preparatory phase, we are continuing technical development while supporting the legislative process. If the regulatory framework is approved in 2026, the digital euro could be introduced by 2029.”
The project now stands at a decisive moment. Its outcome could significantly reshape the European payments landscape, strengthen the continent’s financial and economic sovereignty, and influence the future development of fintech and intra-European trade.
Christine Lagarde: a long journey in the service of Europe
Born in Paris in 1956, Christine Lagarde is a French lawyer, senior executive, and politician. She holds degrees in law and political science and spent 25 years at the international law firm Baker McKenzie, where she eventually became Chair of its Global Executive Committee.
She later entered public service in France, holding several senior ministerial roles, including Minister Delegate for Foreign Trade, Minister of Agriculture, and Minister of Economy and Finance. She was notably the first woman to serve as France’s Minister of Economy and Finance.
In 2011, she became the first female Managing Director of the International Monetary Fund (IMF), a position she held for eight years. In 2019, she was appointed President of the ECB, where she has since played a key role in advancing major strategic initiatives, including the development of the digital euro.
Although highly technical in nature, the digital euro represents a fundamental shift in how central bank money could function in the future. Its implementation could strengthen the role of central banks in digital finance while shaping the long-term evolution of financial systems across Europe.
Source: European Central Bank
