The President of the European Central Bank (ECB) announced that the development of the digital euro (CBDC) technology has been completed, and the next step awaits political approval. It is expected to go online as early as the second half of 2026.
(Background: France’s Paris Bank and 10 European banks are launching the Qivalis euro stablecoin, planning to go live in the second half of 2026)
(Additional background: Europe’s largest asset management company Amundi is entering Ethereum, launching a tokenized euro money fund: opening 24/7 trading)

Table of Contents

• Technology in place, waiting for political green light
• MiCA opens the door for private stablecoins
• CBDC and stablecoins run in parallel

The President of the European Central Bank (ECB), Lagarde, announced at the last annual press conference yesterday that the core system development of the digital euro has been fully completed. The next step is for the European Council and Parliament to approve legislation. If the schedule proceeds as planned, the Eurozone will enter an era of both official CBDC and private stablecoins in the second half of 2026.

Technology in place, waiting for political green light

Lagarde pointed out that the goal of the digital euro is to provide “public digital payment options” for 340 million Eurozone residents and to ensure that the euro’s role in cross-border e-commerce and online platforms is not diminished. According to ECB internal timelines, the legislative core includes three major modules: privacy protection, anti-money laundering (AML), and interbank interoperability.

The ECB emphasizes that the digital euro will coexist with existing cash, and the public can freely switch between different forms.

MiCA opens the door for private stablecoins

Meanwhile, the MiCA regulation, which officially took effect in 2025, has outlined regulatory boundaries for stablecoin providers. For example, a July report by 动区 (Dongqu) mentioned that a joint venture called AllUnity, jointly established by Deutsche Bank’s asset management subsidiary DWS, cryptocurrency investment firm Galaxy Digital, and market maker Flow Traders, has officially issued a fully compliant euro stablecoin EURAU under the European MiCA regulation in Germany.

On the other hand, the Qivalis alliance, composed of 9 to 10 large banks including France’s Paris Bank, also plans to launch a private euro stablecoin in 2026, focusing on cross-chain interoperability and real-time settlement. The euro stablecoin market is growing rapidly.

CBDC and stablecoins run in parallel

It is foreseeable that in the future, official CBDC and private stablecoins will compete side by side. The former is issued and cleared by the public sector, emphasizing inclusiveness and legal tender status; the latter offers speed and customization, facilitating quick turnover for enterprises in decentralized finance (DeFi) or trade finance.

Analysts believe that running in parallel can increase the visibility of the euro in global digital payments and reduce reliance on US dollar stablecoins and US-based payment networks.

Observers warn that the European Parliament is expected to hold a key vote in May 2026, which will determine whether the ECB can issue the digital euro as scheduled in the second half of the year. If the legislative process proceeds smoothly, 2026 could become the “Year of the Digital Euro.”