Digital Euro to Launch in October 2025: ECB President Christine Lagarde
During a European Central Bank press conference, Christine Lagarde announced that the digital euro would launch in October after more than five years of development.
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Lagarde said that while the ECB is preparing for the deadline, the launch can only move forward once the European Commission, Council, and Parliament complete the legislative process.
According to her, the digital euro is relevant and imperative for both institutional and retail levels.
Discussions and experiments around Central Bank Digital Currencies (CBDCs) have been ongoing in various countries.
US and Europe Take Different Approaches to CBDCs
After the elections, US President Donald Trump signed an order to halt CBDC development in the country. Europe, however, is taking a different approach.
ECB official Piero Cipollone previously stated that Trump’s presidency is accelerating the launch of the digital euro. He warned that the rapid growth of dollar-pegged stablecoins like USDT and USDC could pose risks to European financial sovereignty.
Meanwhile, lawmakers hold differing views on whether the digital euro is the right move. Sarah Knafo, a member of the EU Parliament, said in December that Europe should establish a strategic Bitcoin reserve instead of launching a CBDC. She believes the digital euro would restrict personal freedoms by giving the Central Bank control over transactions.
Concerns Over Financial Privacy and Centralization
Critics argue that a digital euro could lead to too much government control over personal finances. X user @BowTiedMara voiced these worries, saying that with a digital euro, the ECB will track every payment, forcing people to trade their financial privacy for convenience. “Without cash, you depend on the ECB,” he wrote.
While critics have their concerns, the digital euro could also modernize payment systems and reduce reliance on private financial institutions. A central bank-backed digital currency might lower transaction costs, improve cross-border payments, and help people who don’t have traditional banking access.
On top of that, the ECB sees the digital euro as a way to fight the dominance of US dollar-pegged stablecoins. By offering a European option, they want to protect financial sovereignty and reduce the dependence on foreign-controlled digital assets.
As the launch date gets closer, the debate is still on about whether the digital euro will bring more benefits or risks to Europeans.
What Are CBDCs, and How Do They Work?
Central Bank Digital Currencies are digital versions of a country’s currency, issued and controlled by the government. They’re like regular money, just in digital form, and they’re fully regulated. Unlike crypto, which is decentralized and not controlled by anyone, CBDCs focus on keeping things stable and government-backed.
In October 2020, the Bahamas launched the world’s first central bank digital currency, called the Sand Dollar.
Countries are testing out CBDCs for various reasons – faster payments, better financial inclusion, and less reliance on cash.
Related: Trump Launches Crypto Task Force and Blocks CBDC Development
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