European Central Bank Accelerates Preparations for Digital Euro… Aiming for October Launch

# ECB Accelerates Digital Euro Project, Aiming for 2025 Completion By Jae-Hyung Park, Correspondent in New York The European Central Bank (ECB) is intensifying its efforts to prepare for the digital euro project, with plans to finalize all procedures by October 2025, according to a report by AMB Crypto on the 10th (local time). However, ECB President Christine Lagarde emphasized that the introduction of the digital euro hinges on legal approval from the European Commission, the Council, and the Parliament. The ECB contends that the digital euro is becoming an indispensable technology, even for skeptics who previously doubted its necessity. President Lagarde stated, "The need for the digital euro has grown stronger than ever in both wholesale and retail finance." # Project Milestones and Objectives The digital euro project began in earnest in November 2023. Currently, the ECB is engaged in several key activities, including optimizing technical designs, establishing regulatory frameworks, and gathering stakeholder feedback. The digital euro is expected to be composed of two main formats: ### Retail Digital Euro Intended for everyday transactions, it will provide basic transfer functions free of charge and will include offline payment capabilities. ### Wholesale Digital Euro Focused on improving interbank transactions and cross-border payments, utilizing blockchain technology. # Privacy and Control Concerns The ECB has repeatedly stressed that the digital euro is not a tool for monitoring citizens' financial activities. President Lagarde assured, "The ECB will not track individuals' transaction histories." Despite these assurances, concerns persist that the central bank could exert control over finances through digital currency. # Diverging Strategies in European Banking As the ECB pushes forward with government-led financial innovation through the digital euro, European banks are expanding cryptocurrency services within a separate regulatory framework. Spain's major bank, BBVA, recently received regulatory approval to offer Bitcoin (BTC) and Ethereum (ETH) trading services to its customers. This move has been facilitated by the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation. While the ECB drives central bank-led financial innovation via the digital euro, individual banks are adopting contrasting strategies by expanding financial services based on cryptocurrencies.