Catenaa, Friday, March 14, 2025-European Central Bank (ECB) President Christine Lagarde confirmed plans to complete the preparation phase for the digital euro by October 2025, despite ongoing skepticism from lawmakers and privacy advocates.
Speaking at a press conference on recently, Lagarde emphasized that the digital euro will coexist with cash and function as a pseudonymous, government-backed payment option.
The initiative, which began in November 2023, includes stakeholder consultations and the development of a regulatory framework.
“The European Union is looking to launch the digital euro, our central bank digital currency, by October this year,” Lagarde said. ECB board members Fabio Panetta and Piero Cipollone are leading efforts to gain approval from the European Parliament, European Council, and European Commission.
However, opposition remains. Some lawmakers question the necessity of a central bank digital currency (CBDC), citing risks of government overreach and data privacy concerns. Recent technical failures in the ECB’s Target 2 (T2) payment system, which suffered a two-hour outage on Feb. 27, have further fueled skepticism.
Critics warn that a CBDC could enable transaction monitoring and undermine financial autonomy. Lagarde insists the digital euro will not replace cash, and privacy measures will ensure that transactions remain secure.
The ECB’s push comes amid global debate over digital currencies. The European Union supports a centralized CBDC, while U.S. President Donald Trump has strongly opposed such initiatives, citing concerns over financial surveillance.
With hurdles still ahead, the ECB’s digital euro project faces a critical test as it moves toward its October deadline.
