Why might there be a digital euro?

Read aloud

The European Central Bank is studying the possibilities of introducing a digital euro. If it is introduced, there will be two ways to pay with central bank money: cash payments can be made with euro banknotes and coins, while digital payments can be made with digital euros. This could help to increase Europe's autonomy.

CBDC

The digital euro is also known as central bank digital currency (CBDC) or digital central bank money.

A second reliable public means of payment

There are currently several ways to pay in Europe. For example, you can pay using digital money in your bank account. A bank is a private company, and that is why this money is also called private money. You can also pay in cash, using euro banknotes and coins. This is called public money, because it is issued by the European Central Bank (ECB). The number of digital payments is increasing. That is why it was proposed that the ECB also issues a euro for digital payments: the digital euro. This will be a second form of public money, alongside euro banknotes and coins. And just like cash, it can offer a simple, widely accepted, secure and reliable public means of payment. For everyone in Europe.

The digital euro for you

Suppose the digital euro is introduced. That means you will have a new means of payment alongside cash and the digital money in your bank account. The digital euro could also be useful for you. Want to know more? Find out how you may soon be able to pay with digital euros.

A stronger Europe

There is currently no European alternative to digital payments for the entire euro area. When making payments in brick-and-mortar shops, we rely heavily on big US corporations like Visa and Mastercard. They process about two-thirds of all card payments in the euro area. The Netherlands also depends on these firms. And our online and smartphone payments are also increasingly processed by US tech firms such as Apple Pay. A digital euro, based on European technology, could help to strengthen the euro area. It would make us less dependent on non-European payment service providers, and would support Europe's strategic autonomy.

EU legislators decide on a digital euro

On 28 June 2023, the European Commission presented a draft legislative proposal for a possible digital euro. Negotiations are currently underway in Brussels, the Netherlands being one of the discussion partners. Both the European Parliament and the Council of the European Union will decide on the legislative proposal. Meanwhile, the ECB is preparing for the possible issuance of a digital euro. If European politicians approve the proposal, the ECB will continue its preparations and conduct a first test in 2027. The digital euro could then be a reality in 2029 at the earliest.

The ECB’s initial preparations

The ECB wants to be well prepared in case the European legislators accept the digital euro proposal. The ECB, DNB and the other central banks of the euro area countries started the first phase of preparations in late 2023. Together with various other interested parties, they developed what is known as a rulebook. This set of rules and procedures is meant to ensure that the digital euro works the same way everywhere. They also selected providers to help build the platform for the digital euro.

ECB continues its preparations

After a successful initial preparation phase the ECB decided in October 2025 to continue with the next phase of preparations. The aim is to be technically ready in a few years' time should the digital euro be issued. Read more about how the ECB is preparing for the digital euro.

DNB's role

The euro area central banks are represented in the ECB's various project and working groups. For instance, DNB participates in the High-Level Task Force that is responsible for the digital euro project and reports to the ECB Governing Council. DNB chairs the national Digital Euro Task Force of the National Forum on the Payment System (NFPS). In addition, DNB provides advice on the digital euro to the Ministry of Finance and Dutch politicians.

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