Attention! A historic moment is approaching. The European Central Bank is preparing to launch the digital euro. The regulator is already halfway to making this groundbreaking decision. With just a final push, victory will be within reach. According to UBS analysts, the preparatory work is "at an advanced stage."
Among major Western central banks, the ECB is showing the greatest ambition in developing a central bank digital currency (CBDC), experts note. Impressive progress indeed.
For now, the regulator is waiting for the European Parliament and the European Council to align on the necessary legislation before the Governing Council makes a final decision. This is expected to occur in the first half of 2026. Then, the ECB will still need another 2.5 to 3 years to finalize the technical framework. If all goes smoothly, the digital euro could be launched in 2028. However, a more realistic timeline is 2029 or 2030.
UBS has previously argued that the digital euro is seen as a tool that can preserve "monetary sovereignty and strengthen Europe's strategic autonomy in a shifting geopolitical environment." The virtual currency would be a retail CBDC with legal tender status. It is expected to complement, rather than replace, cash.
However, skepticism lingers in the cryptocurrency and global financial communities. UBS analysts warn that the ECB's biggest challenge may be persuading the public to embrace the digital euro. They recommend that the regulator prepare a broad-based public relations campaign to help drive the adoption of the new currency.
