Lagarde says digital euro pilot will run for 12 months from late 2027

Key points

• She said adopting the regulation establishing the digital euro by the end of 2026 was "key" to the plan.
• 36 payment providers have been picked to test payments, account set-up, merchant acceptance and offline functions.

In a speech on 17 October to the IMF Annual Meetings in Bangkok, the ECB president said digital money must evolve to serve an increasingly digital economy, and that Europe was pursuing this through the planned central bank digital currency.

Lagarde presented the digital euro as a digital equivalent of cash that would encourage payment innovation while preserving Europe's sovereignty and strategic autonomy. She said adopting the regulation establishing the digital euro by the end of 2026 was "key" to a smooth and secure launch. The ECB has already named 36 payment providers for the pilot, which will test payments, account set-up, merchant acceptance and offline functionality.

Final approval must be agreed with the Council before it takes effect.

The ECB has framed the digital euro as a sovereign answer to US-led stablecoins. Executive board member Isabel Schnabel argued in August that central bank money is superior, and Lagarde has warned that heavy use of stablecoins as money proxies could precede the privatisation of money and create systemic risks, limiting central banks' ability to conduct monetary policy. The Trump administration has backed dollar stablecoins under Executive Order 14178.

What to watch: EU lawmakers and Council negotiators must agree the digital euro regulation, which Lagarde wants adopted by the end of 2026.

Read the full story on Bitcoin.com News →