What You Should Know:

• The ECB aims to complete the testing phase for the digital euro by October 2025.
• Board members are collaborating with essential stakeholders to ensure the launch of the digital euro.
• Lawmakers have voiced skepticism regarding the implementation.

European Central Bank President Christine Lagarde announced that they strive to conclude the digital euro’s preparation by October 2025. However, concerns were raised from legislators about its viability, notably after a significant outage of the Target 2 payment system that hindered transactions for an entire day.

An ECB representative reassured that the digital euro would function similarly to its instant payment system, TIPS, which operates continuously and manages smaller transactions.

Lagarde emphasized the urgency for the digital euro, contrasting with past reluctance from some countries, including Spain, regarding the necessity of a digital euro. She highlighted, “I think it is critically important, and for the agnostics or the sceptics, it now seems more relevant and more imperative than ever before, both on the wholesale and on the retail level.”

As the ECB moves forward, it prepares to test the digital euro extensively before making a definitive decision on its release, with the European Union’s Governing Council expected to address legislation after implementation early next year.