The digital euro enters the countdown phase! ECB: Coming out as soon as October this year, it is still pending legislative approval

With the rise of central bank digital currency (CBDC) around the world, different jurisdictions are working on their own versions of CBDCs. Entering 2025, the eurozone is one of the world's largest economies, and the European Central Bank's (ECB)-dominated single monetary system is actively promoting the development of a digital euro, which may be expected to come out in October this year.

Update on the digital euro: when will it be launched?

At the moment, the digital euro has not been officially launched, but there are indications that its release may be earlier than expected. According to the ECB's plan, the preparation of the digital euro will enter the second phase, including the selection of technology suppliers, a public awareness plan and the establishment of a regulatory framework. At the moment, the digital euro is still in the preparation stage and has not yet been opened for purchase or use.

However, according to independent journalist Efrat Fenigson, ECB President Christine Lagarde will complete preparations for the digital euro by October this year, although the official launch still depends on legislative support from the European Commission, the Council and Parliament in cooperation with all parties:

CBDC in EU will launch in Oct. 2025. Wholesale & retail. Israel is following EU’s footsteps – preparing for CBDC with a new 110 page design document. pic.twitter.com/fUr1CkBRmy

— Efrat Fenigson (@efenigson) March 8, 2025

Our deadline is October 2025 and we are preparing for it, but there is no way to go it alone.

The advantages, risks and concerns of the digital euro

Lagarde highlighted that the main reasons for the ECB's push for a digital euro include:

Declining cash usage: As society gradually shifts to cashless payments, the digital euro is seen as a response to this trend.

The rise of private-sector digital currencies: Cryptocurrencies and stablecoins threaten the dominance of fiat currencies.

Maintain monetary sovereignty: Ensure the euro's competitiveness in the digital financial age and reduce dependence on external payment systems ( such as the U.S. payment network ).

We need to prepare our currency for the future, where the digital euro will become "a digital form of cash, coexisting with physical cash, available for all digital payments, free to use and meeting the highest privacy standards".

Potential risks and challenges

The launch of the digital euro also poses some potential risks:

Technology and security risks: Central banks will become technology institutions, facing systemic risks and possible cyberattacks.

Privacy concerns: Public surveillance of transactions continues to raise privacy concerns.

Banking impact: The widespread use of the digital euro could affect the deposit base of commercial banks and thus their ability to lend.

( European parliamentarians shout rejection of digital euros! Call for the establishment of a bitcoin reserve ) on par with El Salvador and the United States

Privacy and regulatory issues

The ECB stressed that the digital euro would meet "the highest privacy standards" and promised that its design would avoid the surveillance and control model used by China's digital yuan. However, the European Union's recent attempts to remove end-to-end crypto (E2EE) and set a cap on cash transactions have raised concerns about increased government regulation.

At the same time, while the ECB promises that the digital euro will be "managed by commercial banks", in practice, this may lead to data sharing between central banks and commercial banks, weakening privacy protections. This design pattern could make the digital euro a "controlled digital cash" rather than a completely anonymous payment method.

Analyst: Fastest 2028 is officially on the road

While preparations for the digital euro are expected to be completed in October this year, its eventual launch still needs legislative approval from the European Parliament and the European Commission. Joachim Nagel, president of Deutsche Bank (Deutsche Bundesbank), predicted last year that even if all goes well, the digital euro may not be officially issued until 2028.

( JPMorgan Chase: EU MiCA regulations promote the development of euro stablecoins, and the United States may follow up with Trump to follow up on regulatory )

The digital euro is an important measure taken by the ECB to cope with the digital financial era, aiming to improve the efficiency and security of the payment system. However, its privacy protection, technical challenges and impact on the banking industry remain to be seen. In the coming years, we will witness a pivotal moment in the digital euro from concept to implementation.

This article Digital Euro enters the countdown phase! ECB: Coming out as soon as October this year, still pending legislative approval First appeared in Chain News ABMedia.