The European Central Bank (ECB) has signalled that the digital euro is technically ready, and now all that’s needed is a legislative push from the European Parliament and Commission to bring it to life.
Speaking at the ECB’s final press conference of the year, President Christine Lagarde emphasized that the groundwork is complete.
“We have done our work, we have carried the water. But it’s now for the European Council and later the European Parliament to determine whether the Commission proposal is satisfactory and how it can be transformed into law,” Lagarde said.
Timeline and Political Hurdles
ECB Executive Board member Piero Cipollone previously estimated a rollout around mid-2029, describing it as a realistic target. Discussions among EU member states are reportedly going smoothly, shifting the focus to political institutions to provide the final authorization.
“We place great hopes in the work that will be done in Parliament, once the Council has determined its views,” Lagarde added.
MiCA-Compliant Stablecoins Seen as Safe
Lagarde also addressed concerns about stablecoins, clarifying that they do not threaten Europe’s monetary sovereignty when issued under the Markets in Crypto-Assets Regulation (MiCA) framework.
“We are lucky in Europe to have MiCAR,” she said, noting that regulated stablecoins can be supervised, regarded as safe, and provide an alternative payment method.
She cautioned, however, about potential risks related to multi-issuance stablecoins, highlighting the need for careful oversight to protect both the financial system and holders.
Digital Euro Will Complement Fiat
The ECB is clear: the digital euro will exist alongside traditional cash, not replace it. Lagarde stressed that the goal is to ensure a stable anchor for the financial system in the digital age, while keeping euro cash widely available.
The digital euro aims to be user-friendly, fast, efficient, low-cost, and functional both online and offline, providing citizens with a modern complement to traditional fiat.
Forward-Looking Economic Outlook
Finally, Lagarde addressed the ECB’s data-driven monetary policy, projecting that inflation will meet the 2% target by 2028, reinforcing confidence in the euro’s long-term stability as the digital era approaches.
In short, the digital euro is ready for takeoff—now it’s up to European lawmakers to decide when the continent officially enters the next phase of digital currency adoption.
