Europe is moving towards the digitalization of the digital euro, a digital currency (CBDC) project issued by the European Central Bank (ECB), which began to take shape in 2020.
As reported by Cryptonoticias at a meeting on March 6th in Frankfurt, Germany, ECB President Christine Lagarde announced the possibility of the European CBDC launch as long as the European Parliament completes the legislative process for approval.
“Our deadline is October 2025 and we are preparing for that date, but we cannot move forward unless the legislative proceedings are completed. The ECB is focusing on accelerating the rhythm of actually placing this digital euro.
meeting Christine Lagarde, from President of Central European Bank.
What is the digital euro?
The European Central Bank explains that because physical tickets or tickets are used today, the digital euro can act as an alternative to payments or as an electronic version of cash.
“The digital euro can provide you with another way to pay online in stores or in stores, or send money to friends and family.”
European Central Bank Statement.
According to the ECB’s declaration, there are primarily retail payment methods. It is centrally emitted and managed by that entity. Additionally, the ECB guarantees 1:1 support where each digital euro has the nominal value of cash.
In other words, unlike Bitcoin (BTC), where operations are fully decentralized, digital euro issuance and distribution That will fall on what the European Central Bank has.
What will the structure of the digital euro be?
The ECB has made it clear that the technological structure of the digital euro is still defined. The communique shows that the institution has experienced a variety of approaches, but has not confirmed which one is chosen.
Possibility of options under investigation Use distributed record technologyis known as “DLT” in English. DLT is a system in which information is stored and updated on multiple nodes or computers rather than relying on a single central server. Its use is common in cryptocurrency networks via SO called “blockchains”, but does not indicate that the ECB adopts a specific decentralized registration system.
The point highlighted by the ECB is interoperability: the digital euro is designed as follows: Integrate with payment system It is present in the Eurozone and promotes daily use.
This integration of the digital euro could include systems such as Target 2 (T2), an ECB’s key platform. Process interbank payments in real time And today it links thousands of banks in Europe. Target 2 allows inter-institutional transactions to flow without any problems.
On March 10, 2025, European lawmakers expressed doubt about the launch of the digital euro after its recent failure at T2. During these cases, the banks faced problems with normal processing, and this Generated questions about the reliability of the current infrastructure of the ECB And the ability to withstand large digital currencies.
In this way, Lagarde is enthusiastically anticipating the launch of European CBDCs in October, but it does reflect information that reflects the lack of concrete progress that ECB documents are far from their enthusiasm.
Privacy: Wide promises, rare details
One of the pillars the ECB emphasizes in its communications is privacy in its use of the digital euro. However, the agency does not provide technical details as to how this objective is achieved.
According to the ECB, data protection is guaranteed by regulations. It must still be approved by lawmakers of the European Uniondetermine how to balance your needs, such as the battle against privacy and money laundering. The message is clear. The digital euro will be “private,” but not in terms of escape from current regulations.
With regard to the protection of end-user data and information, the digital euro regulations proposed by the European Central Bank (ECB) are based on a legal framework that must be interpreted and implemented by humans, and introduce inconsistencies or delays due to the subjective nature of its applications.
That approach is supported by Privacy Promise and Audit Independently, it relies on the will and ability of lawmakers and authorities to balance goals, such as the fight against money laundering.
On the contrary, programmaticity based on automated code offers important benefits. Do not submit to traditional written regulationshowever, their rules are carried out independently of human intervention. This property ensures consistent and rapid application of data protection measures, dynamically adapting to needs without relying on interpretation or bureaucracy.
ECB guarantees that users’ financial data cannot be linked directly to the Eurosystem identity (ECB Plus National Central Bank). Institution-controlled data They will be “pseudonymized”a term that means that personal information is hidden after an anonymous identifier, making it difficult to track the individual behind each transaction.
On the other hand, the bank or other intermediary will only access Minimum information required by European lawand the commercial use of that data requires the express consent of the user.
To strengthen this trust, the ECB promises to undergo an audit by an independent data protection authority, but it does not specify who this process will be or how it will be implemented.
Offline Digital Euro: Cash wink
In addition to paying online, via an internet-connected wallet, the ECB is also considering an offline version of the digital euro, designed to replicate the privacy and simplicity of cash. In this scenario, users can use mobile phone applications to send money directly to each other.
It would be enough to “get the device closer to complete the transaction without intervention from the banks or the eurosystem at the time.” According to the ECB, the process will start Depositing digital euros in your digital wallet From your bank account. Once loaded, payment data is limited to the devices involved.
To make that possible, the ECB analyzes the use of “safe elements.” This is a hardware chip specialized for mobile phones that allows these transactions without connections. This feature not only seeks privacy, but also accessibility among people and in physical stores in situations where there is no internet.
Limitations and financial stability
The digital euro is allocated from the perspective of individual holdings. The ECB plans to establish a suspension of the amounts each individual or company can own in a digital wallet. Bank deposits are very mobile Towards this new form of money. Local media has shown that this “limit” will be around 3,000 euros.
This limitation, which has not yet been defined for “calibration,” aims to balance the user experience with the stability of the financial system. For payments beyond that amount, users can link their wallets to traditional bank accounts. This promotes flexibility without compromising the role of the bank.
Programmable Money: Great Uncertainty
The Digital Euro can establish automatic payments “for rent and nursery schools” in accordance with the ECB regulations. These are conditional payments, automated transactions based on predefined criteria, and the ECB predicts its report with July 2025 results. This suggests that this aspect is still under evaluation. However, the institution emphasizes that it is not “programmable money.”
According to the ECB, this concept refers to digital money (such as vouchers) limited to a specific purpose or time (such as vouchers). Therefore, many people and participants in the digital asset ecosystem are They doubt this aspectDigital Euro maintains freedom of use without conditions or restrictions. This is a promise to distinguish it from more controlled experiments.
As the ECB rises, the digital euro has emerged as a tool that combines cash stability with digital comfort. However, there are still undefined infrastructure and recent system failures, such as Target 2, which raise questions about its feasibility.
(Tottenslate)Banco Central (T)Europe (T)Moneta Digital De Banco Central (CBDC) (T)Relevantes
