What Is It?
The digital euro would be a liability of the European Central Bank — not a commercial bank or a private company. Unlike e-money, stablecoins, or bank deposits, it would carry the same legal tender status as physical euro banknotes.
This places it at the base of the European monetary stack. Its introduction raises fundamental structural questions: What happens to deposit funding at commercial banks? How do PSPs and card networks fit into a CBDC distribution model? And what does "programmable money" mean for payment product design?
These are the questions our research is designed to answer — as the project evolves.
Offline capability, privacy safeguards, holding limits, and programmability — the key architectural decisions under deliberation.
How banks and PSPs would distribute the digital euro, and what changes to their revenue models this entails.
The EU legislative proposal, its current status, and the open questions on legal tender status and holding caps.
What a successful CBDC rollout means for card schemes, wallets, stablecoins, and instant payment rails like SEPA Inst.
How a digital euro would interact with CBDCs in other jurisdictions and the implications for correspondent banking.
Project Timeline
Key milestones in the digital euro's development.
October 2021
The ECB formally launched a two-year investigation phase to examine the design and distribution model for a potential digital euro.
June 2023
The European Commission published its legislative proposal establishing a legal framework for the digital euro, alongside a companion proposal on euro legal tender status.
November 2023
The ECB concluded the investigation phase and launched a two-year preparation phase focused on technical development, rulebook drafting, and supplier selection.
2024–2026 ← We are here
The ECB is developing the technical infrastructure, refining the distribution model, and running preparatory work with intermediaries. A formal issuance decision has not yet been made.
TBD
A decision to proceed with issuance requires both ECB Governing Council approval and completion of the EU legislative process. No confirmed date has been set.
Open Questions
The digital euro project is still evolving. These are the structural questions that will determine its ultimate impact.
The ECB has indicated a holding cap (potentially €3,000) to prevent large-scale flight from bank deposits. Whether this is sufficient — and enforceable — is contested.
The ECB has committed to "high privacy" but not full anonymity. The technical design — which intermediary sees what, and when — remains one of the most contentious design decisions.
The ECB's distribution model relies on commercial intermediaries, but the fee model for distributing a zero-interest CBDC is unresolved. This is a critical open question for the industry.
The ability to attach conditions to digital euro transfers — while offering commercial opportunity — raises fundamental questions about monetary sovereignty and the political economy of money.
We publish analysis as the project develops. Get in touch to be notified of new research.