What it means
A digital form of cash planned by the European Central Bank. It is not the same thing as EURC.
The digital euro would be electronic cash issued by the European Central Bank. Like a banknote, it would be a claim on the central bank itself, not a deposit at a commercial bank.
How it works
You would use it through your bank or a payment app, online and in shops, and the ECB plans an offline mode that works without a connection. Basic use would be free.
The ECB has proposed a limit on how much each person can hold, so that money doesn't leave bank deposits too quickly. Above the limit, payments would flow to and from your bank account.
It is still being prepared. Launching it needs an EU law that the European Parliament and Council are still working on, and a final decision by the ECB, so there is no firm launch date. Anyone selling you a digital euro today is selling something else.
It isn't a cryptocurrency or a stablecoin. It wouldn't run on a public blockchain, and it would need no reserves, because it would be central bank money itself.
EURC, which Defied uses, is a euro stablecoin issued today by Circle and backed by euro reserves. It lives on public blockchains, so you can hold it in a wallet only you control and send it at any hour. See the digital euro guide.
Related terms
| Term | What it means |
|---|---|
| EURC | A euro stablecoin issued by Circle: one EURC is meant to be worth one euro, backed by euro reserves. |
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| MiCA | Markets in Crypto-Assets: the EU's rulebook for crypto-assets and the companies that issue or handle them, in force since 2024. |
| Fiat | Ordinary government money such as the euro or the dollar, as held in a bank account. |
This glossary explains terms in general. It isn't investment, tax or legal advice.