For almost five years, the European Central Bank (ECB) has been debating the launch of the digital euro, but progress remains elusive. Initially, a decision was expected by autumn 2025, yet once again the project is delayed. The digital euro was designed to complement cash, modernise the European payment system and reduce reliance on U.S. providers such as PayPal and Mastercard. Instead, the currency remains stuck in discussions and testing phases, while cryptocurrencies – and especially stablecoins – rapidly expand their role in global finance. International banks already use stablecoins for cross-border transactions, and merchants increasingly accept them as a reliable medium of exchange, reports G.business.
ECB President Christine Lagarde presented a roadmap in Frankfurt last week, but it raised more questions than answers. No firm launch date has been set, and EU finance ministers must first debate the legal framework before any final decision can be made. A key point of contention is the so-called holding limit – the maximum amount of digital euro that a citizen could own. While €3,000 was widely discussed, the ECB is now tasked with submitting a proposal that still requires political approval. On the technical side, the ECB plans a dedicated app, yet it is also testing external infrastructures such as Ripple’s blockchain solutions, highlighting how far the internal project still lags behind.
These delays are striking at a time when stablecoins like USDT (Tether) and USDC (Circle) are reaching new records. According to market data, daily transaction volumes for leading stablecoins have surpassed $100 billion, offering speed and low costs far beyond what traditional banking can provide. German economists and financial experts warn that the EU risks losing ground if its digital currency is not available until 2029. Critics argue that private providers are already setting the standards, leaving state-led initiatives irrelevant before they even start.
The debate around a European digital currency began as early as 2020 with consultations, followed by an investigation phase in 2021. The first legislative draft was presented in 2023, yet little tangible progress has been made. Officially, the ECB stresses that data protection, financial stability and technological security are top priorities. In practice, however, political negotiations, divergent national interests and technical uncertainties are blocking the way forward.
If the pace does not change, Europe could face increasing dependence on privately issued digital currencies – with all the risks this entails for regulation, consumer protection and financial stability. For citizens, the promise of a fast, secure digital euro remains out of reach, and the gap with stablecoins continues to widen.
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