ECB Focuses on Digital Euro Rollout Amid Stable Rate Decisions
The European Central Bank (ECB) has completed the technical and preparatory work for the digital euro and is now awaiting action from the European Council and European Parliament. ECB President Christine Lagarde emphasized that rate decisions will be data-driven, noting that inflation is projected to be on track to reach 2% by 2028 with no fixed path for interest rates.
During the year-end press conference, the ECB left euro-area policy rates unchanged and indicated that future decisions will be taken on a meeting-by-meeting basis according to incoming data. Revised inflation projections suggest a rate of around 2.1% in 2025, falling below target in 2026 and 2027, before returning to 2.0% in 2028.
The digital euro is considered a strategic tool for the ECB and is expected to launch in the second half of 2026. Its regulation will be governed under the Markets in Crypto-Assets (MiCA) framework, which is currently under review by the European Council and European Parliament. ECB board member Piero Cipollone highlighted that the digital euro could help ensure payment continuity during cyberattacks or power outages, thereby reinforcing financial stability.
The ECB has urged EU institutions to act quickly to finalize the regulation governing the digital euro to facilitate its timely introduction.
