The digital euro is intended to complement cash and strengthen Europe’s strategic autonomy in payments, as explained in the Bundesbank’s latest Monthly Report. “It would introduce the benefits of cash to the digital world and ensure that everyone in the euro area also has digital access to a public form of money in the future,” the Bundesbank’s experts write.

Cash would remain available without restrictions

The digital euro would ensure that central bank money meets the requirements of an increasingly digital economy and enables progress in the field of cashless payments. The digital euro is designed to be a complementary electronic form of central bank money. Cash would remain available without restrictions, the Bank’s experts emphasise in their report.

Strengthening Europe’s autonomy

Another objective is to strengthen Europe’s autonomy. The digital euro could play a part in boosting the efficiency and resilience of European payments and strengthening their strategic autonomy in a globalised and digitalised financial system, the report states. At present, just under two-thirds of all card payments in the euro area are settled via non-European systems. In addition, the digital euro would contribute to data sovereignty and help make payment transactions more inclusive by means of high data protection standards and a design that minimises barriers to access.

Electronic form of central bank money for everyday life

The digital euro has been designed as an electronic form of central bank money for everyday payments. Payments would be possible at the point of sale, in e-commerce as well as between individuals. The digital euro could be used for both online and offline payments.

Project progress and next steps

The digital euro project entered a new phase at the end of last year: the Eurosystem has been working intensively on its implementation since October 2025, and the Council of the European Union has formally adopted its negotiating mandate.

The legislative process is currently under way – the European Parliament has already expressed a generally positive opinion on the establishment of a digital euro. Important amendments were adopted by a large majority in February 2026; specific votes on the draft legislation are planned for May 2026.

The latest edition of the Monthly Report outlines that the Eurosystem could conduct its first pilot as of mid-2027 and be ready to potentially roll out the digital euro as from 2029. Like all national central banks in the euro area, the Bundesbank is a constituent part of the project management. It is also one of the group of six central banks mandated by the Governing Council to provide and operate, in particular, the clearing and settlement infrastructure.

The final decision on the issuance of a digital euro will only be taken by the Governing Council once the legal basis has been adopted.