The European Central Bank states that the digital euro is ready, and its final launch depends on EU legislative decisions.

The European Central Bank recently stated that the technical and institutional preparations for the digital euro are essentially complete. Whether to launch it officially is no longer a technical issue but has entered the stage of political and legislative decision-making. Currently, the project is under review by the European Council and the European Parliament, with the final decision-making authority transferred to the EU legislative bodies.

ECB President Christine Lagarde noted in a recent statement that the central bank has completed all preliminary design and system construction work, including operational frameworks and risk control mechanisms. “The European Council and the European Parliament will next decide whether to adopt the European Commission’s proposal and whether it needs to be amended and transformed into formal legislation.” She emphasized that the digital euro is technically “ready to launch at any time.”

According to the proposal, the digital euro will serve as a retail central bank digital currency (CBDC) with legal tender status, issued by the European Central Bank and backed by national credit. Its goal is to continue ensuring the public’s use of central bank money in the digital age while enhancing the efficiency and resilience of Europe’s payment system. The ECB stated that the digital euro will focus on financial stability, monetary sovereignty, user privacy, and financial inclusion.

Unlike private-issued digital assets such as stablecoins, the digital euro is a direct claim on the central bank, with a legal status equivalent to cash. The ECB emphasized that the system will provide “high privacy protection” while meeting anti-money laundering and compliance requirements, responding to concerns about government over-monitoring of fund flows.

The urgency to promote the digital euro partly stems from changes in the global cryptocurrency policy environment. This year, the US has adopted a more open regulatory attitude toward stablecoins and strengthened the US dollar’s position in digital finance through the GENIUS Act. This has led European policymakers to re-examine issues of monetary sovereignty. ECB officials pointed out that without the launch of a public digital currency, the payment system and monetary control could gradually be dominated by private or foreign systems.

Notably, in contrast to Europe, former US President Donald Trump has consistently opposed central bank digital currencies and has banned federal agencies from promoting CBDC projects through executive orders.

The ECB began researching the feasibility of the digital euro as early as 2021 and emphasized that its technical approach remains neutral, with future compatibility with public blockchains such as Ethereum and Solana. Currently, discussions have shifted from conceptual to practical implementation. With legislative review progressing, the digital euro is expected to officially enter the public eye by the end of this decade.