Oct 31, 2025
According to a report from Yahoo Finance, the European Central Bank has been instructed by the European Council to accelerate the development process of the digital euro. The digital euro is a central bank digital currency, or CBDC.
Christine Lagarde, president of the European Central Bank, announced via social media on Friday that the Governing Council is moving into the “next and final phase” of developing its CBDC. She stated that the digital euro is “important” as the European Central Bank aims to digitize cash, thereby reducing reliance on physical notes.
“The European Council has asked us and all those involved to accelerate the process so that we can roll out the digital euro as early as possible,” Lagarde explained. “This is a big project because the euro is our currency, your currency–it brings us together. Its a symbol of trust in our common destiny. So, off we go with the digital euro in that next and final phase of the preparation.”
The digital euro is defined as a CBDC, which is a digital form of a fiat currency. They are distinctly different from stablecoins, as they do not use public blockchains to settle transactions and are issued by central banks. The digital euro will not use digital ledger technology, though it will borrow “key design principles.”
Crypto enthusiasts have long opposed CBDCs, citing concerns about privacy, centralization, and the potential for central banks to freeze funds. Stablecoin issuers like Tether and Circle can also freeze funds, and they regularly do when wallets are linked to hacks or other criminal activity.
The ECB press office did not respond to a request for comment regarding the freezing process for the digital euro.
If the European Parliament passes the necessary regulations in 2026, then the digital euro will be piloted in 2027 and, if successful, formally rolled out across Europe in 2029. In a blog post, the European Central Bank explained that if regulations are passed during 2026, a “pilot exercise” and the first “initial transactions” could take place as early as mid-2027.
The European Central Bank estimates that the total development costs for the digital euro will be EUR1.3 billion, or approximately $1.5 billion, up until the first issuance in 2029. Subsequent operating costs are estimated to be EUR320 million a year, or $369 million.