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The European Central Bank (ECB) has rejected a proposal for an offline-only digital euro and requires the currency to have hybrid online and offline functionality.
The European Central Bank (ECB) has questioned a proposal for a purely offline digital euro, asserting that a digital euro must have both online and offline capabilities to serve its intended purpose. The ECB official, Alessandro Giovannini, stated that an offline-only solution would not enable crucial functionalities like online shopping or long-distance payments. The ECB sees the digital euro as complementing existing payments and strengthening the entire ecosystem, not acting only if the private sector fails.
ECB's position on the digital euro
The ECB's planned digital euro would function both online and offline, ensuring resilience during internet outages.
It is designed to complement, not replace, cash and provide a European alternative to non-European payment networks.
Key features of the digital euro include privacy, security, and broad availability across the euro area.
The purely offline proposal
A key report from a lead EU lawmaker proposed a purely offline digital euro, unless the private sector failed to provide its own solution.
This approach was criticized by the ECB for its limited functionality, particularly the inability to make online payments or long-distance transfers.
Broader context and considerations
Privacy and anonymity: Offline digital currencies offer cash-like privacy, as transactions can occur without an internet connection. However, this anonymity must be balanced against anti-money laundering and counter-terrorism financing goals. The ECB has committed to protecting personal data and includes offline, cash-like options to enhance privacy.
Risks and mitigation: Offline payments present risks like "double spending" since there's no immediate central ledger verification. The Indian central bank, for instance, is addressing this by using secure hardware and limiting offline wallet balances. The ECB's digital euro plans include robust measures, like using secure hardware (e.g., Trusted Platform Modules), to prevent double spending and other fraud.
Financial stability: Concerns have been raised about the potential for "bank runs" if a central bank digital currency (CBDC) causes mass withdrawals from commercial banks. The European Commission has proposed limiting the digital euro's use as a store of value to mitigate this risk.

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European Central Bank President Christine Lagarde stated that reaching the inflation target of 2 percent is close, considering that financial stability is a prerequisite for price stability.
Lagarde's remarks came in an interview published on Saturday with the Chinese news agency Xinhua, which the European Central Bank reposted on its official website.

The global economic landscape is in full swing, and the president of the European Central Bank (ECB), Christine Lagarde, sees in the current American policies a unique chance for the euro to strengthen its position on the international stage. According to Odaily, this statement comes as the global economic order experiences significant disruptions, creating fertile ground for new power dynamics.
A changing world: The opportunity for the euro

A major development is taking place in Europe as nine of the continent’s biggest banks have come together to launch a euro denominated stablecoin fully compliant with MiCA regulation. The names include ING Banca Sella KBC Danske Bank DekaBank UniCredit SEB CaixaBank and Raiffeisen Bank International. This move is not just about a new digital currency it is about Europe preparing to play a bigger role in the global digital asset economy.
Stablecoins have always been controversial in traditional banking circles because of questions around regulation and backing. By launching a MiCA compliant euro stablecoin these banks are making a clear statement. They want to ensure that the European financial system remains competitive while also building trust by offering a fully regulated digital euro option. This also shows how MiCA the Markets in Crypto Assets regulation is already shaping the future of Europe’s crypto market by creating a unified legal framework.
The impact of this stablecoin could be huge. For one it gives businesses and consumers across Europe a trusted and bank supported way to use digital assets without relying on US dollar stablecoins like USDT or USDC. This will strengthen the role of the euro in global payments and potentially reduce dependency on dollar backed digital assets. In cross border trade the euro stablecoin could cut costs improve speed and make transactions smoother for both individuals and corporations.
Looking ahead this could also be a foundation for the European Central Bank’s digital euro plans. If banks can prove that a MiCA compliant stablecoin works safely at scale it could speed up the rollout of central bank backed digital money. On the competitive side Europe may now be in a stronger position against other regions where private companies not banks dominate the stablecoin space.
Investors and analysts will be watching closely. The euro stablecoin could become a key liquidity tool in DeFi as long as integration with exchanges and blockchain networks is executed properly. The fact that top tier banks are directly involved adds credibility which could attract institutional players who have been cautious so far.
This collaboration is more than just another stablecoin launch. It marks a turning point where traditional banks are no longer standing on the sidelines but are stepping into the crypto ecosystem with real commitment. The outcome could reshape the balance of global stablecoin markets and give Europe a stronger voice in digital finance.
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The Euro Central Bank (ECB) plans to make a decision on the progression of a Central Bank Digital Currency (CBDC) in the first months of October 2025. This decision is to be made during a council meeting concerning the digital euro. The preparation stage ECB started in November 2023. It is in the process of drafting the step to close this preparation stage. As such, ECB President Christine Lagarde is asking EU countries to focus on drafting legislation to support the creation of this digital currency. This step is highly likely to change the eurozone’s 20 countries’ economy drastically, as it plans to modernize the payments systems in place.
The digital euro project kicked off in October 2020, and combines a project's goals with a detailed report that says cash substitute must be efficient, accessible, and secure. These 'rules' serve the primary purpose of guiding the project in the subsequent phases. The 'test phases' of the project 'rules' serves to assess the structure of payment standards, stakeholder interfaces, application of novel ideas such as offline payments, and payment standards in the subsequent phases. These are all issue 'rules' that address the problem of financial privacy and digital financial stability. The focus 'tested' along with the payment standards, interfaces, and novelty leads to the conclusion of the purse-sized battery and cash outline purse theory. The offline payment systems and other secure region payment systems support the DNS with ease of connectivity and other lower connectivity region support.
Lagarde specifically refers to the major EU payment systems (TARGET 2 and RTP) when she mentions reliance on 3rd payment systems. The euro's ability to protect monetary sovereignty will be preserved as a direct result of the adoption of the digital euro. In her recent floor speech in the EU Parliament, she underlined the importance of digitalization, which will allow the system to orient itself to the euro and seamlessly integrate with the payment systems. If the optimistic scenario based on early 2026 approvals is realized, she sees 2028 as the launch year. The privacy concern while holding digital euro, mitigating the risk of automated monitoring and actionable every transaction is critical. The Michale proposed Krohne euro digitalization that was defense 's Nepal and the other 2023 server region programs lay the groundwork. The proposed the Digital Euro Regulation of the EU Commission is a fundamental document that MOUs the crucial pillars.
Japan’s Economic and Financial Policies Institute will likely discuss the ECB’s newly published report on central bank digital currencies in the digital euro zone at the ECB’s next round of consultations on the digital euro on September 29, 2023. The ECB is likely still waiting on the completion of technical developments, the endorsement or predecessors of the supporting legislation, and the conclusions of public consultations on the digital euro. The digital euro will make euro zone bank payments instant and nearly costless. The cash history of the euro still circulates and it is still the second most used currency in the world. The anticipation of central bank digital currencies, or CBDCs, is also skyrocketing and the ECB is positioning itself as the undisputed leader of the digital currency world.
The ECB’s public consultations and technical dialogues engaged with fintech companies, merchants, and citizens from 25 countries, and the ECB is likely still completing anti-money laundering and counter-terrorism financing measures. Cooperation with public consultations will confirm that the digital euro is created with respect to the needs of European citizens and businesses.
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The European Central Bank cut interest rates, as US tariffs and declining business confidence have drained already weak economic growth.

The central bank has reduced the interest rate for the twenty Eurozone countries on deposits by 25 basis points to 2.25 percent.

He said that increasing uncertainty is likely to lead to a decline in confidence among households and businesses, and the market's negative and volatile reaction to trade tensions is likely to have an increasing impact on financing conditions.