Finance
ECB hopes to have political deal on digital euro by early 2026
Published by Global Banking & Finance Review®
Posted on May 15, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 15, 2025
2 min readLast updated: January 23, 2026
The ECB aims for a digital euro by 2026, pending political decisions. The currency would enhance payment security and reduce reliance on US firms.
FRANKFURT (Reuters) -The European Central Bank hopes to have all the political decisions in place by early next year to issue a digital euro and would then need two to three years to launch the currency, ECB board member Piero Cipollone said on Thursday.
The ECB has been working on a digital version of the euro for years but progress has been slower than expected, mostly because legislation is still not in place to allow the bank to proceed.
Financial upheaval in the aftermath of Donald Trump's election as the U.S. President has increased the urgency, however, as Europe relies on big U.S. firms for most digital payments, a potential financial vulnerability.
"I hope to have everything done by the beginning of next year, very early next year," Cipollone told a conference when asked about the timing of the legal framework. "We need the legislation in place, and from that, two to three years will be enough to launch the digital euro."
Unlike when they make a card payment by the likes of Visa or Mastercard, consumers paying with a digital would have a direct claim on the central bank and their funds would be similar in function and security as cash.
It would allow customers to make direct payments both in online and offline formats.
Cipollone said a key hurdle is getting a political agreement from EU member states but that could be reached before the summer. Work by the European Parliament could take somewhat longer, he added.
When asked if Trump could accelerate the process, French central bank chief Francois Villeroy de Galhau, speaking at the same event, said it enhanced the ECB's determination.
(Reporting by Balazs KoranyiEditing by Tomasz Janowski)
The main topic is the European Central Bank's plan to issue a digital euro by 2026, pending political and legislative decisions.
The digital euro is important to enhance Europe's digital payment security and reduce reliance on US firms for digital transactions.
Key challenges include obtaining political agreement from EU member states and finalizing necessary legislation.
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