The digital euro: a new way to pay

The digital euro would be an electronic form of cash. It is intended for everyone across the euro area to use for payments, just like euro notes and coins. There is one important difference: cash is something you can hold in your hand. With the digital euro, you would pay using an app on your phone or a payment card. Using the digital euro would be free of charge.

The digital euro would be issued by the European Central Bank (ECB) and the national central banks of euro area countries, including De Nederlandsche Bank (DNB). It would be a form of central bank digital currency (CBDC), also known as digital central bank money.

Our financial system uses both public and private money. Today, public money mainly takes the form of cash issued by central banks. Private money is issued by commercial banks. We are using cash less and less – particularly in the Netherlands – and increasingly making digital payments through commercial banks.

It is important that public money remains available to everyone in the euro area. Public money is issued by central banks, which cannot go bankrupt. This makes it essential to a stable financial system.

That is why central banks are working on a digital euro. It would allow people to make payments directly with public money in the digital world too.

Digital payments in Dutch shops, including payments by debit card or mobile phone, are processed by non-European companies such as Visa and Mastercard. These firms process about two-thirds of all card payments in the euro area. Tech firms such as Apple and Google are also increasingly involved in our online and mobile payments. These services work well, but they also make us dependent on providers outside Europe. The digital euro would keep the payment infrastructure – from payer to payee – in European hands.

How would you pay with the digital euro?

The digital euro is intended for ordinary, everyday payments: shopping in a store, buying something online or paying another person. Exactly how you would pay has not yet been finalised. Different parts of the system are still being developed and tested.

If the digital euro is introduced and you decide to use it, you would first set up a digital wallet with your own bank or another bank You would then transfer money from your bank account to your wallet. If you prefer not to pay with your phone, you could use a digital euro debit card and top it up.

Can you pay with the digital euro without an internet connection?

The aim is to let you pay with the digital euro even without an internet connection. This feature is still being developed. For example, if a shop has poor Wi-Fi or mobile reception, you would still be able to pay using digital euros from your wallet. Just like cash, but without having to deal with change.

Offline payments with the digital euro would allow you to keep paying even if certain networks go down. Alongside cash, this could help keep our payment systems working during disruptions.

How to pay offline with digital euros

In a shop, you tap your card or phone on the payment terminal. To pay someone nearby offline, you would hold your phones close together. The devices would communicate using near-field communication (NFC). If you use an app, you would also be able to check your digital euro balance while offline. Whether this would also be possible with a card depends on the final design.

What would the digital euro mean for you?

If the digital euro is introduced, you’ll have another way to pay. It is intended to be a means of payment for everyone.

Will you have to use the digital euro?

No. The digital euro is intended to give you an additional way to pay. You would still be able to use other payment methods, including cash.

Will cash disappear because of the digital euro?

No. The digital euro is intended to complement cash, not replace it. You must still be able to continue paying with euro notes and coins.

How would your privacy be protected with the digital euro?

Protecting your privacy is an important part of developing the digital euro. Different technologies are being used to protect personal data.
The ECB would not be able to identify who is behind a payment.

Only your bank or payment service provider would be able to link a payment to your personal data. This is necessary to comply with European laws on preventing money laundering and terrorist financing.

Offline payments would offer even greater privacy. Details of these payments would be known only to you and the person you pay, just as with cash. Your transaction details would not be shared with payment service providers or the Eurosystem.

Can the government see what you buy with digital euros?

No. The digital euro is not designed to let governments see what you buy.

How safe is the digital euro?

The digital euro must be safe to use. Its development therefore focuses on keeping payments secure and protecting personal data. Data could be encrypted, and measures to protect against fraud are being developed.

What is the difference between the digital euro and money in your bank account?

You probably already have money in a bank account that you use for digital payments. But this is not the same as the digital euro. The money in your current account is held with a commercial bank, while digital euros would be issued by a central bank. There would probably be a limit on how much you could hold in digital euros. A maximum of €3,000 is being considered.

Paying with the digital euro could feel very similar to the way you pay today. You might not notice the technical difference when making a payment.

Is the digital euro the same as Bitcoin?

No. The digital euro would not be a cryptocurrency like Bitcoin and would not use blockchain technology. It would be a euro in digital form, so its value would not fluctuate like that of cryptocurrencies. One digital euro would always be worth one euro, because its value would be guaranteed by the ECB.

When will the digital euro be introduced?

The digital euro does not yet exist. New European legislation is needed before it can be introduced. The ECB is working on the assumption that the first issuance could take place in 2029, but this date is not final. The timetable depends in part on European legislation. We expect a final political decision by the end of 2026 or early 2027 on whether or not to proceed with preparations for the digital euro.

We will keep you updated on this page.

• FAQs on the digital euro

• Listen to the podcast (in Dutch): Digitale euro in onrustige wereld

• Listen to the podcast (in Dutch): De digitale euro: wat heb ik eraan?

• Visit the exhibition on the digital euro in De Nieuwe Schatkamer