EU Advances Digital Euro Plan but Full Launch May Take Years

The European Union has taken a significant step toward launching a digital euro, with finance ministers approving a roadmap for the central bank digital currency (CBDC). The MOVE aims to reduce reliance on U.S.-based payment systems like Visa and Mastercard, offering a European alternative backed by the Eurosystem.

Despite the progress, full implementation could take up to three years after legislative approval. Privacy concerns and financial stability risks remain unresolved. The digital euro WOULD coexist with commercial bank money, accessible via an ECB-issued digital wallet.

Key compromises include granting EU finance ministers oversight of issuance and holding limits. The project reflects growing global momentum for CBDCs, though technical and regulatory hurdles persist.