ECB Aims to Launch Digital Euro by 2025 Inspired by China’s e-CNY

European Central Bank (ECB) President Christine Lagarde has confirmed that the digital Euro will be designed to serve all citizens equally, not just the elite. Lagarde emphasized that the digital Euro must be inclusive, accessible, and fair in its structure and delivery. She noted that the ECB is keenly positioning the project to show reasonable merits to all different spheres of society, arguing that when rightly adopted, the digital version of the Euro would benefit the masses and not just the privileged or the technologically astute.

Lagarde cited China’s implementation of the digital Yuan, or e-CNY, as an example of successful leadership in digital currency. She highlighted that China has implemented the e-CNY at large levels with broad testing and implementation on millions of users, particularly among small businesses and retail users. The ECB is referring to this strategy to develop a similar rollout plan in the eurozone, ensuring functionality and wide-reaching availability to both consumers and merchants through the adaptation of proven means.

Beyond domestic utility, the ECB is positioning the digital Euro as a key player in global trade. Efforts are underway to strengthen the Euro’s role in international markets and reduce dependency on the U.S. dollar. The currency is expected to launch officially by October 2025. The transformation of the world using Central Bank Digital Currencies (CBDCs) is consolidating, with many nations looking into digital currencies. China is already ahead of the game, and the People's Bank of China is further extending the facilities of the e-CNY. The ECB has indicated the tightening of collaboration with China as both regions are trying to increase digital finance and cope with the latest trade tensions.

As the ECB accelerates its digital Euro development, it is focusing on equity, usability, and international competitiveness. With inspiration drawn from China’s e-CNY, the central bank is working toward a digital currency that supports inclusive growth and adapts to the evolving global financial environment. The digital Euro is envisioned as a complement to cash, not a replacement, providing a safe and efficient means of payment while addressing concerns about privacy and security. The ECB is currently conducting experiments and consultations to determine the best way to implement a digital Euro, with a focus on ensuring that it meets the needs of all users.