The project is expected to cost €432m, according to Piero Cipollone, a member of the executive board of the European Central Bank. In an on Monday 24 March 2025, Cipollone provided insight into the costs and developments of the highly anticipated project. These expenses are to cover both the infrastructure and operation of the system for a period of 10 to 15 years, with additional internal development costs anticipated, particularly related to the ledger.

The costs are based on market research conducted during the procurement process, which is nearing completion. However, Cipollone noted that the final costs are uncertain, as they depend on the completion of the legislative process.

Cipollone explained that the ECB would finance the project in the same way it handles the production and issuance of banknotes. “The ECB would bear these costs in the same way as it does for the production and issuance of banknotes. And like for banknotes, these costs would be covered by the seigniorage income generated by the digital euro," he said. Internal development costs, particularly for the ledger, will be additional and are not included in the €432m estimate.

The digital euro, a central bank digital currency (CBDC), has significant attention, especially amid growing concerns regarding the EU’s dependency on foreign providers for payment solutions. Cipollone expressed his agreement with ECB president Christine Lagarde, who described the digital euro as a tool of sovereignty. Cipollone stated, “The digital euro is a structural necessity for the European payments market, irrespective of recent developments in other countries.”

He further elaborated on the urgency surrounding the project, noting the increasing pressure to address vulnerabilities in payment systems. “There is a growing sense of urgency,” Cipollone remarked, acknowledging the external risks faced by Europe, particularly from reliance on foreign payment infrastructures. This urgency, he believes, has been recognised by legislators, further accelerating the push for the digital euro’s development.

One of the driving factors behind the digital euro initiative is to reduce Europe’s dependence on non-European payment systems, which Cipollone argued would foster greater competition, lower prices, better services and enhanced innovation across the continent. Despite the United States its own plans for a digital dollar, Cipollone argued that Europe’s need for the digital euro is distinct, owing to the region’s fragmented payments market.

In addition to discussing the cost and purpose of the digital euro, Cipollone also touched upon broader economic considerations. As Europe faces significant challenges, such as the climate transition and rising geopolitical tensions, the ECB remains focused on maintaining price stability while supporting growth. Cipollone expressed concern about the risk of reducing investment, warning that keeping GDP growth below potential could undermine long-term economic resilience. He noted, “Investment is essential for supporting and growing the economy, and unnecessarily reducing investment can hamper long-term growth.”

As the ECB with the digital euro project, it remains in the preparation phase, with key milestones expected to conclude by October 2025. The technical developments and procurement processes are on track, with final decisions anticipated soon. However, the timeline for when people will be able to use the digital euro will depend on the completion of the legislative process, which is expected to take another two to two-and-a-half years from the moment a decision is made.