A big moment for the digital euro - The Economist

The European Central Bank has moved the digital euro into its next phase of preparation, a step The Economist frames as a defining moment for the project. Rather than a cryptocurrency, the digital euro would be a central bank liability — public money in digital form — issued alongside, not instead of, physical cash. Its stated aims include giving euro-area households a widely accepted digital payment option and reducing reliance on non-European payment networks.

For markets, the significance lies less in any immediate change to monetary policy than in infrastructure. A retail digital euro could reshape how payments are cleared, how deposits sit within the banking system, and how much scope remains for private stablecoins and card networks in Europe. Watch the legislative process in the EU, the ECB's design choices — notably holding limits on individual balances — and how banks respond on deposit funding and fees. Timelines remain uncertain, and no issuance has been decided.