Digital euro

A digital euro

Recognising the need to reconsider the way in which central banks deliver core functions and core objectives in light of an evolving digital economy, a number of central banks are considering the potential issuance of a Central Bank Digital Currency (CBDC).

In a European context, the European Central Bank (ECB) is working with the national central banks of the euro area (including Central Bank of Ireland) to investigate the potential issuance of a retail CBDC – a digital euro.

Project Status Update - March  2026

The digital euro project has entered an exciting new phase of development. Following the completion of the two-year preparation phase in October 2025, the Eurosystem is now focused on building technical capacity and working closely with market participants to prepare for a potential issuance in 2029. This timeline is based on the working assumption that European co-legislators will adopt the Digital Euro Regulation (‘DER’ or ‘Regulation’) on the establishment of the digital euro during 2026 – under the Irish EU Presidency (more information on this below).

Euro area leaders have consistently reaffirmed the vital importance of this initiative, calling for accelerated progress to support a competitive and resilient European payment system and strengthen the international role of the euro.

The Eurosystem has launched a call for expression of interest inviting licensed payment service providers (PSPs) to participate in a 12-month digital euro pilot scheduled for the second half of 2027. The pilot will test digital euro features within a controlled environment, including person-to-person payments (online and offline) and person-to-business payments (at physical points of sale and in e-commerce), involving staff from participating Eurosystem central banks and selected merchants at ECB and national central bank premises.

Selected PSPs will provide pilot payment services, support onboarding of consumers and merchants, and contribute to validating core functionalities, with their feedback helping to shape technical specifications and refine the digital euro design and user experience.

Applications will be assessed based on eligibility requirements and weighted evaluation criteria covering regulatory compliance, technical and operational capabilities, market presence and delivery track record, with the pool of selected providers ensuring representative coverage of the euro area market.

Interested PSPs should submit their applications to [email protected] by 17:00 CEST on 14 May 2026. Further information can be found on the ECBs website, the digital euro pilot, including a dedicated FAQs section.

It is important to note that a decision to issue a digital euro will only take place, once the Regulation has been finalised and adoption. Following adoption, we anticipate increasing our public engagement and awareness-building activities to ensure citizens and businesses are well-informed about the digital euro ahead of any potential launch decision by the Governing Council.

What is a digital euro?

As Europe embraces the digital age, a new form of currency is being explored; the digital euro. This is a digital form of central bank money issued and backed by the European Central Bank (similar to physical euro banknotes and coins). It would act as an electronic equivalent to cash and it would complement banknotes and coins, not replace them.

A digital euro would be a fast, secure and easy to use payment-instrument, which would be available for use by European citizens and businesses for everyday payments, across the euro area. A digital euro would ensure that citizens of the euro area would continue to have access to widely accepted, safe and trusted means of payment for the digital age.

What would a digital euro mean for me? 

A digital euro would give you greater choice for how you pay complementing cash and other payment services. It will be available for all typical day-to-day payments, for instance to transfer money to someone else (“person-to-person”), to pay in shops and restaurants, to pay online, or to make payments to public authorities.

  • Universally acceptable

    You would be able to use a digital euro to pay for goods and services in any euro area business that already accepts a digital means of payment (such as, credit or debit card payments)

  • Free of charge for basic use

    A digital euro would be a public good, and similar to banknotes and coins, individuals in the euro area would be able to pay in digital euro, free of charge.

  • Available offline

    Currently debit and credit card payments require an internet or mobile network connection to be accepted and processed. A digital euro would be able to operate in the absence of such a connection, similar to banknotes and coins.

  • Secure and private

    Even when you use a digital euro online, the Eurosystem would not be able to identify you based on your payments. Using offline digital euro to pay will offer you cash-like privacy. The digital euro is designed with minimised data collection and segregated information processing, ensuring end-user identities are not visible to the Eurosystem.

  • Accessible and inclusive

    The digital euro is being designed with "accessibility by design" principles to ensure it can be used by everyone, including people with disabilities, limited digital literacy, or other accessibility needs. Inclusive features are being explored to meet and exceed the requirements of the European Accessibility Act.

  • Guaranteed value
    The value of digital euro will be constant – one digital euro will always be equal to a one euro coin.

You would be able to open a digital euro account at a bank or any other payment service provider, such as a payment institution and electronic money institution. In case you do not have a bank or payment account, or you do not wish to open a digital euro account with a bank or payment service provider, you could use a public entity designated by your Member State.

You could also change your provider whenever you wish. In case your payment service provider is no longer able to ensure access to your digital euro account, there would be an automatic mechanism which ensures that you can get access to your digital euro with the help of another private intermediary.

Watch this video about how the digital euro would work.

If a decision to issue a digital euro is taken in the future, it would be the largest project undertaken by the Eurosystem since the launch of the single currency and could potentially have very significant implications for citizens, businesses and the financial system.

Consequently, before any decision can be made to introduce a digital euro, all foreseeable benefits and potential drawbacks will be carefully considered by the Eurosystem, the European Commission and the central banks and governments of euro area countries.

Why is the Eurosystem investigating this?

Around the world, central banks are considering whether and how they might issue CBDCs for a number of reasons, including:

  • Tackling the declining use of cash
  • Providing a catalyst for digitalisation of economies
  • Increasing financial inclusion and
  • Promoting competition in payments services and
  • Supporting strategic autonomy in the context of growing geo-economic fragmentation

For the Eurosystem, the issuance of a digital euro could support the wider policy objectives of the European Union including the digitalisation of the European economy and fostering the international role of the euro. A digital euro could also help to tackle specific monetary concerns by responding to the declining use of cash as a means of payment and ensuring the normal provision of payment services.

ECB Digital Euro Project

On 29 October 2025, the Governing Council of the ECB decided that the Eurosystem will continue its preparations and move to the next phase of the digital euro project. The Governing Council’s decision aligns with European leaders’ request to accelerate progress on the digital euro, as stated at the October 2025 Euro Summit.

The objectives of this phase of the digital euro project include:

  1. Developing, testing and piloting: developing the technical foundations for a potential issuance
  2. Preparation for first launch of the digital euro: this will include finalisation of the digital euro rulebook
  3. Provide transversal support to digital euro via market engagement, and technical input to support the legislation

The Governing Councils decision to progress to this phase on the project builds on the substantial groundwork laid during the previous two-year preparation and separately, investigation phases.

The ECB regularly document the progress of the project in comprehensive reports.

A two-year preparation phase commenced on 01 November 2023 to lay the groundwork for the potential issuance of a digital euro. Key achievements of this phase included: 

  1. The development of the draft digital euro scheme rulebook.
  2. The selection of providers for for digital euro components and related services.
  3. The successful running of an innovation platform for experimentation with market participants.
  4. The investigation by a technical workstream into the fit of the digital euro in the payment ecosystem.
  5. The completion of extensive user research to ensure that the digital euro is designed to meet the needs of European citizens and merchants as well as.
  6. The provision of technical input to co-legislators as requested to support the legislative decisions. 

A full report on the activities undertaken as part of the preparation phase can be found in the concluding report of the preparation phase.

Prior to the preparation phase, in October 2021, the Eurosystem launched a two-year investigation phase to explore possible technical and policy options that could form the basis of a digital euro design. The investigation considered how digital euro could be distributed and used by citizens and businesses and the potential impact it may have on the European economy and society.

What is the European Commission’s digital euro legislative proposal?

On 28 June 2023, the European Commission published its legislative proposal (the ‘proposal’) for the establishment of a legal framework for a possible digital euro. The legislative process for the digital euro is a key component of its development, running in parallel with the technical work being done by the ECB.

The proposal aims to establish legal tender status for a potential digital euro offering ensuring it would be widely accepted as a means of payment across the euro area. It also supports that digital euro services should be free of charge for individuals, reflecting its status as a public good and keeping in line with individuals’ experience with cash.  

The Eurosystem's technical preparations are based on the working assumption that European co-legislators will adopt the Regulation on the establishment of the digital euro during 2026 – under the Irish EU Presidency.

The Council adopted its negotiating mandate on the Single Currency Package in December 2025, marking a decisive step forward in the legislative process. The European Parliament is progressing towards determining its own negotiating position, with the ECON Committee Rapporteur announcing that a final vote on the Report will be held in Spring 2026. Once the Parliament adopts its report, trilogue negotiations between the Parliament, Council and Commission could commence. Ireland will have an important role to play in progressing the digital euro project when it takes over the EU presidency in the second half of this year.

Important note: The ECB Governing Council's possible decision on whether to issue a digital euro, and on what date, will only be taken once the legislation is adopted. The Eurosystem will only issue the digital euro in full compliance with the legislation.

For further information on the legislative proposal please refer to the European Commission’s Digital Euro Package.

How can I find out more?

The ECB and Eurosystem national central banks will continue to provide updates on the digital euro project as the work progresses.

If you require any further information, please contact the Central Bank of Ireland’s Digital Euro Unit at [email protected]. Additional information can be found on the ECB’s  website.

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