Purchasing a coffee with a mobile phone has become routine, much like sending money via Bizum or shopping online with a card. In the coming years, there could be a fourth option: using digital euros. While the user experience would remain the same, the origin of the money would shift from a commercial bank to the European Central Bank (ECB).
The digital euro will barely alter how we pay, but it will change the type of money used. Currently, a customer uses money in their bank account to buy a coffee with Bizum or a card. With digital euros, the mobile phone remains in use, but payments would be made with an electronic version of cash issued by the ECB.
“This initiative essentially brings users the ability to use cash in a digital way, both online and offline,” explains Amaia Jaureguizar, project director of the digital euro at Inetum, a company collaborating with the Bank of Spain to define and develop the technological platform. She emphasises that there is no intention to replace cash.
This function is reminiscent of withdrawing money from an ATM. Instead of withdrawing 20 euros into a wallet, digital euros could be allocated to a digital wallet for later use. Banks and payment service providers would provide the main access routes, though alternatives for those without a bank account are being explored.
“There is no intention to replace cash,” emphasises Amaia Jaureguizar, the project leader at Inetum.
While the delivery method of digital money is finalised, Spain is preparing the necessary infrastructure. The Bank of Spain is currently evaluating bids for a €70.2 million contract announced in July, according to the organisation. Companies had until the 10th of August to submit documentation. The contract outlines three years of technological services to develop, implement, and maintain initiatives connected to the digital euro and other central bank digital currencies, with specialists in systems engineering and architecture.
One major technological challenge will be ensuring functionality when connectivity fails. The project includes an offline mode where the balance is pre-stored in the device for use without real-time account verification. “The idea is to enable digital payments during outages,” notes Jaureguizar, referring to an expected 2025 power cut. A physical card is also being considered to assist those less comfortable with smartphones.
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Key Points
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ECB Money
The digital euro will be public money issued by the European Central Bank, like banknotes and coins, but in digital form. Unlike a bank account balance, it will not be commercial bank money. -
Does Not Replace Cash
The project is designed to complement banknotes and coins. As Jaureguizar states, “There is no intention to replace cash.” -
Offline Payments
One of its main features will be the ability to conduct some payments offline. Balances can be pre-stored on devices for use without internet access. -
Initial Trials in 2027
The ECB has selected 36 providers for a twelve-month pilot from the second half of 2027. Payments between individuals, at physical stores, and online will be tested. This beta will not be legal tender. -
2029 as the Target
The ECB aims to be technically ready for potential issuance by 2029, pending European legislative processes.
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These scenarios will become less theoretical in 2027. The Bank of Spain, alongside the ECB and 18 other Eurosystem national central banks, will participate in a year-long pilot starting mid-2027. The ECB has chosen 36 payment service providers, including two Spanish contenders: a consortium with Abanca, Ibercaja, Unicaja, Cecabank, Bizum, and Deloitte; and Uinku, operating under Sipay.
The trials will include both connected and offline payments between individuals, online shopping, and transactions at everyday venues like cafes and restaurants. In Spain, employees of the Bank of Spain will initially use this early version. Although functionally and technically similar to the future digital euro, this beta will not yet be legal tender.
The technological development is progressing alongside legislative negotiations. Inetum collaborates with the Bank of Spain on the “definition and development” of the platform and how the digital euro will operate and be used. Jaureguizar believes the project is “well underway,” though aspects remain unresolved. If the European legislative framework is completed, the ECB aims to be ready for a potential issuance by 2029.
Offline payments will allow pre-stored balance to be used even without a connection.
The project not only addresses the rise of mobile payments but is rooted in the debate sparked in 2019 by Libra, Facebook’s digital currency aimed at creating a global payment system. Although unsuccessful, it alarmed central banks. Now, there’s a push for greater European autonomy against foreign networks and platforms like Visa, Mastercard, Apple Pay, or Google Pay.
Under Review
The initiative also raises concerns. Some banks fear deposit transfers to the digital euro, especially during instability. Privacy is another significant issue tackled since the infrastructure’s design phase. The aim is to offer high privacy, especially for offline payments, while allowing controls against money laundering and terrorism financing.
Digital payment advancements do not mean cash will disappear. 92% of eurozone businesses with in-person sales still accept cash, compared to 88% accepting cards. Mobile payment acceptance rose from 36% in 2024 to 68% in 2025, per ECB data. The digital euro emerges amid these trends: cash persists, while mobile use rises as a payment form.
The project must still navigate political and regulatory debate before reaching the public. As Brussels negotiates the rules, infrastructure is being built, with initial trials scheduled. The challenge won’t be teaching Europeans to pay with their phones but explaining why, when Bizum and cards function normally, Europe considers a digital cash version necessary.
Redesign of Banknotes
Although future money will increasingly be digital, coins and notes won’t vanish entirely. Alongside the “digital euro,” the ECB is working on a new series of euro banknotes and has launched a public consultation on the new designs. The update aims to enhance security and foil counterfeiting.
The winning design will be chosen by late 2026, but new notes won’t reach Europeans’ hands for several years. Meanwhile, Europeans can vote for their favourite design until September 21. The ten shortlisted proposals fall into two categories: five focusing on European culture, showcasing shared cultural heritage and iconic figures; and five themed “rivers and birds.”
