ECB Aims to Launch Digital Euro by October 2025 to Boost Global Trade

European Central Bank (ECB) President Christine Lagarde has expressed strong support for the digital euro, emphasizing its potential to enhance global trade and financial stability. Lagarde has reiterated the ECB's commitment to launching the digital euro by October 2025, aiming to revitalize the region's economy and strengthen its global financial position.

The digital euro is designed to offer the convenience of digital payments while retaining the security and anonymity features of cash. ECB Executive Board member Piero Cipollone has detailed how the digital euro would function, combining the best aspects of digital transactions with the reliability of traditional currency. This dual functionality is expected to make the digital euro a versatile tool for both domestic and international use.

Lagarde's advocacy for the digital euro comes at a time when the global financial system is undergoing significant changes. The decline of the US dollar's dominance and the rise of digital currencies from other regions have created an opportunity for the euro to assert its global status. Lagarde believes that the digital euro can "earn" this status by providing a stable and efficient means of transaction that is accessible to all.

The ECB's plans for the digital euro are part of a broader strategy to reinforce the single market, foster competition, and drive economic growth within the European Union. By integrating digital currency into the existing financial framework, the ECB aims to create a more resilient and competitive economy that can withstand global economic fluctuations.

Lagarde's speech in Berlin on May 26, 2025, underscored the importance of a "global euro" moment, where the digital euro could play a pivotal role in shaping the future of global trade and finance. Her remarks were made in the context of a broader discussion on the future of currencies and the need for a more inclusive and stable financial system.

The ECB's efforts to strengthen the digital euro are not just about technological innovation but also about ensuring financial stability and security. The digital euro is designed to be a safe and reliable means of payment, offering users the same level of protection as traditional cash. This focus on security is crucial for gaining public trust and ensuring widespread adoption of the digital currency.

Lagarde has reassured the public that the digital Euro will consider the needs of all users. She stated, “So it is not something that is good for the elite, or is good for the young, or is good for some versus others. If it is well done, and if it is well implemented, it would be of service to all citizens.”

In a notable reference, Lagarde further highlighted that the digital Euro will copy the implementation style of China with the Digital Yuan. The Chinese government has rolled out the digital Yuan to millions of users in the past years, especially to retail merchants. “It is piloted on a fairly large scale in China, where it is of use and of service to all citizens,” Lagarde added.

The competition to dethrone the United States dollar as the global reserve currency has shifted to the digital assets market; precisely the Central Bank Digital Currency (CBDC). 137 countries, which represents 98% of the global GDP, have been exploring the launch and development of the CBDC. Three countries – including Nigeria, Jamaica, and the Bahamas – have already launched their respective CBDCs. Meanwhile, 49 countries have already developed their respective CBDC and are currently in the pilot phase. The People’s Bank of China (PBoC) has been pushing the mainstream adoption of e-CNY.

The ECB is advancing to strengthen the digital Euro to be used in global trade, after the October 2025 launch. Furthermore, the ECB is keen to revitalize the economic activities of the bloc through close cooperation with China, as observed in the recent trade wars.

Ultimately, Bitcoin (BTC) and the wider altcoin market stand a chance to win more global users once more governments implement CBDCs that are highly centralized and inflationary.