European Central Bank discusses digital euro and retail payments

The European Central Bank (ECB) held a policy breakfast on June 18, 2026, discussing the future of digital payments and the digital euro.

Current retail payments in Europe are dominated by non-European card schemes, with 15 out of 21 countries lacking a widely used domestic digital payment solution in shops. Nearly two-thirds of euro area card transactions are processed by international schemes.

The digital euro aims to provide an additional payment method across the euro area, supporting online and offline transactions, even during connectivity issues.

It promotes access to public money, preserves cash options, and ensures freedom of choice between cash and digital payments. Consumer benefits include privacy, data protection, and inclusivity.

Merchants and payment service providers would benefit from lower fees, stronger negotiation power, instant fund receipt, and maintaining client relationships. The digital euro is designed to strengthen Europe’s strategic autonomy and resilience in payments.

The ECB plans a 12-month pilot starting in the second half of 2027, involving over 50 payment service providers and four use cases, to test readiness and improve the value proposition.

Legislative preparations are progressing, with the EU Council urging finalization of digital euro legislation by the end of 2026. The ECB will decide on issuing the digital euro once legislation is adopted.

Additional materials and updates are available on the ECB website, and inquiries can be directed to digitaleuro@ecb.europa.eu.