The future of the digital euro: progress, design and operation
14/05/2025
Recently, we published a content about the digital euroAbre en ventana nueva in which we highlight its differences with other means of payment and assets. In this post, we update you on the progress of the digital euro project and explain how it will work in everyday life under the assumption that, finally, its implementation is agreed.
- How is the digital euro project progressing?
Since November 2023, the digital euro project Abre en ventana nuevahas entered a preparatory phase, in which the foundations for its possible launch are being laid.
At this stage, progress is being made in the development of operational standards and selecting the suppliers that, if necessary, will develop the platform and infrastructure necessary for their implementation.
In addition, the market is being consulted and tests and experiments are being carried out to ensure that the digital euro meets user needs and Eurosystem requirements.
If you want to know more about the progress of the project you can consult the reports published Abre en ventana nuevaon the website of the European Central Bank.
- Main features of the digital euro
The digital euro will be a new form of central bank-issued, risk-free money under the control of the Eurosystem. This type of euro will be designed to be used in daily payments and, being legal tender, will be widely accepted throughout the euro area.
Significant progress has been made in the course of the project. As for its design, the digital euro will offer free basic services for citizens, be easy to use through different channels, allow offline payments and ensure a high level of privacy.
- How would a digital euro work?
The digital euro would be the digital equivalent of the banknotes we currently use. You can create a digital wallet through your bank or a designated public authority, such as a post office.
Once created, you can transfer money from your bank account or deposit cash in the digital wallet. This will allow you to make secure and immediate payments throughout the eurozone, whether in physical stores, online or between friends, even without an internet connection.
- Next steps
The development of the digital euro technology platform includes several key aspects. First, the design of the platform must be detailed, ensuring its robustness and efficiency. On the other hand, the Eurosystem is working on establishing a clear methodology to set limits that contribute to preserving the stability of the financial system This will involve setting a cap on the amount of digital euros that a person can have in their digital wallet.
The digital euro will have an appropriate legal framework to regulate its functioning. All this will ensure that the project strengthens Europe's autonomy and complies with current regulations.
“Disclaimer: Please note that this is a translation of the original in Spanish that has been obtained using eTranslation (the machine translation tool provided by the European Commission), with the intention of giving you a basic idea of the content in English until a human translation becomes available. The Banco de España accepts no liability whatsoever in connection with this translation.”
