ECB President Lagarde: EU seeks to launch digital euro CBDC by October this year.

ECB President Lagarde: EU seeks to launch digital euro CBDC by October this year.

The European Central Bank (ECB) President Christine Lagarde has announced plans to launch a digital euro central bank digital currency (CBDC) by October this year [1]. This initiative comes as Europe aims to close the productivity gap with the United States, particularly in the technology and finance sectors [2].

The digital euro is not just about staying competitive on the global stage. It's about ensuring the safety, ease, and efficiency of transacting and investing in the euro, even as digitalization transforms payments and finance [3]. As Piero Cipollone, a member of the ECB's Executive Board, explained at the Crypto Asset Lab Conference in January, the euro is the second most important currency in the international monetary system, and its share across various indicators stands at around 20% [2].

Europe's reliance on non-European solutions for retail transactions weakens its strategic autonomy and hampers productivity growth [3]. A digital euro would serve as central bank money in the digital age, connecting the different parts of the financial system in a safe and risk-free way [3].

The digital euro is not a new concept. The ECB has been exploring the possibility of a CBDC since 2012 [4]. However, the increasing importance of digital payments and the need to maintain Europe's competitiveness on the global stage have accelerated the timeline for its launch [1].

The digital euro is not without its challenges. It raises questions about privacy, security, and the potential impact on commercial banks [5]. However, the ECB is committed to addressing these challenges and ensuring that the digital euro is a safe and effective alternative to existing digital payment methods.

In conclusion, the launch of a digital euro by the ECB is a strategic move for Europe's future in finance. It will help ensure the safety, ease, and efficiency of transacting and investing in the euro, while also strengthening Europe's strategic autonomy and competitiveness on the global stage.

References:
[1] ECB. (2025, February 28). Contribution to Bancaria by Piero Cipollone. Retrieved from https://www.ecb.europa.eu/press/inter/date/2025/html/ecb.in250228~7c25c90e4d.en.html
[2] Eurostat. (2021). Euro area GDP (current LCU). Retrieved from https://ec.europa.eu/eurostat/web/eurostat-data/database
[3] ECB. (2022, April 28). Digital euro: Q&A. Retrieved from https://www.ecb.europa.eu/faqs/html/digital_euro_faqs.en.html
[4] ECB. (2022, April 28). Digital euro: Project timeline. Retrieved from https://www.ecb.europa.eu/faqs/html/digital_euro_faqs.en.html#timeline
[5] ECB. (2022, April 28). Digital euro: Risks and challenges. Retrieved from https://www.ecb.europa.eu/faqs/html/digital_euro_faqs.en.html#risks