The European Union is entering the final stage of preparations for the digital euro, a new electronic form of its common currency that would allow citizens to make payments quickly, securely, and independently of commercial banks. Led by the European Central Bank (ECB) and the European Commission, the project is already being described as the most significant monetary reform in the history of the eurozone.
Implementation plan
If everything proceeds as planned, the decision on implementation will be made by the end of the year, with pilot transactions expected next year. The main goal is to enable people to pay directly with central bank money, without intermediaries such as banks or card companies (Visa, Mastercard, etc.). Everyday transactions—purchases, bill payments, or money transfers—should be free of charge.
Montenegro’s role
Although Montenegro uses the euro, it has observer status in the process. The Central Bank of Montenegro (CBCG) is closely monitoring developments and preparing its legal and technical systems for future adoption in line with EU standards. Since Montenegro is not a member of the EU or the eurozone, it is not directly involved in the decision-making structures of the project.
Strategic significance
The digital euro is seen as a strategic response to the dominance of private payment systems and the rise of central bank digital currencies (CBDCs) in other regions, such as China’s digital yuan. Success would strengthen Europe’s financial autonomy and control over digital transactions.
Ongoing development
The project is still in the preparatory and testing phase. In 2025, the ECB and the European Commission are expected to decide whether to move to the final stage—construction and pilot implementation across multiple eurozone countries. Estimated costs range from €2.8 to €5.4 billion, with potential rollout between 2027 and 2029.
The ECB stresses that the digital euro will not replace cash but serve as its digital complement, ensuring secure, accessible, and private payments. Strict limits will be placed on how much digital euro citizens can hold to prevent risks to the banking system’s stability.
Key challenges
Major challenges include privacy protection and maintaining financial stability. While the ECB pledges maximum protection of user data, some EU lawmakers and economists warn that large-scale transfers of deposits into digital euros could reduce commercial bank liquidity.
If approved, the digital euro would initially cover simple payments (online and in-store), expanding later to government services and smart devices.
