We are frequently asked when the digital euro will be introduced. It is impossible to provide a definitive answer, as the project is proceeding on two simultaneous fronts – the technical development work carried out by the European Central Bank (ECB) and the national central banks of the euro area (including Latvijas Banka), and the drafting of a legal framework for the digital euro by the European Union (EU) institutions. These processes are closely interrelated but formally separated. The ECB and the national central banks of the euro area can ensure technical readiness, but the digital euro cannot be issued without a legal framework drafted and adopted at the EU level.
If the digital euro regulation is adopted in 2026, issuance of the digital euro could begin in 2029. However, any delay in adopting the regulation can significantly affect this schedule.
To better understand the reasons for uncertainty, it is important to know how legal acts are adopted at the EU level. The process is standardised:
- the European Commission drafts a legislative proposal and submits it to the European Parliament and the Council of the EU;
- the European Parliament and the Council of the EU review the proposal, prepare their amendments, and formulate their position;
- to expedite the agreement, institutions engage in trilogues – negotiations between the European Parliament, the Council of the EU, and the European Commission aiming to agree on the final text, which is then officially approved by the European Parliament and the Council of the EU.
The European Commission published the proposal for the digital euro regulation on 28 June 2023. Afterwards, the document was submitted to the European Parliament and the Council of the EU. Following two years of discussions, the Council of the EU approved its position on 19 December 2025. It essentially aligns with the direction proposed by the European Commission but includes clarifications, primarily in the areas of security, holding limits, compensation model, and data protection.
Currently, all attention is focused on the European Parliament, where the matter is progressing considerably slower than initially hoped. Despite the aim to complete the work by May 2026, progress has stalled, mainly due to the diverse views among political groups on whether a digital euro is even necessary and, if so, what form it should take. Some Members of the European Parliament have a different vision for the design of the digital euro, and they have initiated a discussion on the possibility of prioritising only the offline version of the digital euro. This proposal is aimed at limiting online functionality, justifying it with the need to prevent excessive competition with payment solutions developed by the private sector. The ECB and the national central banks of the euro area, as well as the European Commission and the majority of the political groups in the European Parliament opposed such changes.
The question of whether the functionality of the digital euro should be restricted by excluding online use was put to a vote at the European Parliament's plenary sitting on 10 February 2026. The result was clear: the European Parliament supported both the online and offline versions of the digital euro. This signalled that the initial deadlock had been overcome, offering hope that the European Parliament can agree on a common position by the previously planned deadline of May 2026.
Despite the positive development, the European Parliament still faces complex negotiations on several essential details of the regulation. Divergent opinions remain even among political groups supporting the digital euro, particularly on issues concerning the compensation model, the role of financial service providers, the principles for setting holding limits, and other essential aspects of the regulation. Therefore, it is still difficult to predict the further progress of this process and whether the trilogues with the Council and the Commission can start this summer.
The Eurosystem, comprising the ECB and the national central banks of the euro area, has recognised the digital euro project as a priority and has no wish to delay its implementation. This means that infrastructure development is already underway, based on the initial design by the European Commission and taking into account the amendments by the Council of the EU. However, if significant changes are later introduced to the regulation text at the EU level, adjustments to the technical infrastructure will also be required.
To mitigate this risk, the Eurosystem adopts a gradual development approach, maintaining sufficient flexibility to implement necessary corrections in a timely manner without suspending the project. This approach enables further development of the digital euro infrastructure, testing of its functionality, and demonstration of the practical use and readiness of the digital euro, while also allowing time for a clear political decision.
Once the regulation is adopted, the technical implementation phase will be significantly shorter than if the entire project were suspended until the final decision.