Union

would

Update Dec. 23, 11:47 am UTC: This article has been updated to include quotes from Karel Lannoo, CEO of think tank Center for European Policy Studies
The Council of the European Union has backed the European Central Bank’s (ECB) digital euro design, which includes both online and offline functions.
The council <a href="https://www.consilium.europa.eu/en/press/press-releases/2025/12/19/single-currency-council-agrees-position-on-the-digital-euro-and-on-strengthening-the-role-of-cash/pdf/" rel="noopener noreferrer nofollow" target="_blank">said</a> on Friday that it agreed with the ECB on simultaneously launching online and offline variants of the <a href="https://cointelegraph.com/learn/articles/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies" rel="noopener noreferrer nofollow" target="_self">central bank digital currency</a>, breaking with earlier proposals that focused just on the <a href="https://cointelegraph.com/news/ecb-onchain-settlements-lawmakers-weigh-digital-euro-privacy" rel="noopener noreferrer nofollow" target="_self">privacy-heavy offline version</a>.
The digital euro would be issued by the ECB and can be used at any time, even if a user isn’t connected to the internet.
ECB President Christine Lagarde had said on Thursday that the design of the digital euro was ready and its future rested with EU lawmakers.
<blockquote>
 “It's now for the European Council and certainly later on for the European Parliament to identify whether the Commission proposal is satisfactory, how it can be transformed into a piece of legislation or amended.”
</blockquote>
<figure>
 <img alt="Europe, ECB, Euro, European Union, CBDC" src="https://s3.cointelegraph.com/uploads/2025-12/019b4831-f05f-7adb-a291-8a38538ae15d.avif" title="">
 <figcaption style="text-align: center;">
 Christine Lagarde urged EU lawmakers on Thursday to act as the digital euro was ready. Source: <a href="https://multimedia.europarl.europa.eu/en/photo/monetary-dialogue-with-christine-lagarde-president-of-european-central-bank_20250320_EP-182300A_PB9_139" rel="noopener noreferrer nofollow" target="_blank">European Parliament</a>
 </figcaption>
</figure>
<h2 id="the-offline-digital-euro-s-limitations">The offline digital euro’s limitations</h2>
<a href="https://www.edpb.europa.eu/system/files/2025-10/digitaleurotokenbasedofflinemodality_en.pdf" rel="noopener noreferrer nofollow" target="_blank">Documents</a> reveal that a cash-like currency prevents observers from linking multiple activities to the same user. The blueprint for the offline digital euro takes it up a notch by having transaction data never leave the direct participants.
The system is meant to allow authorized devices to transfer digital euro central-bank-signed tokens during in-person transactions.
Payments are supposed to be <a href="https://www.ecb.europa.eu/euro/digital_euro/progress/html/ecb.deprp202406.en.html" rel="noopener noreferrer nofollow" target="_blank">processed via</a> near-field communication (NFC), which requires the devices to be in close proximity to each other.
Related:&nbsp;<a href="https://cointelegraph.com/news/cypherpunk-values-dying-but-not-dead-yet-show" rel="noopener noreferrer nofollow" target="_self">Cypherpunk values are dying, but they’re 'Not Dead Yet'</a>
Some commentators have said the proximity requirement would be difficult to enforce. A relay attack, where an attacker places proxy devices near the receiving and sending devices to bridge the NFC signal over the internet, would be hard to avoid, making some online non-proximity use by advanced users difficult to curtail.
An expert opinion piece by the European Data Protection Board <a href="https://www.edpb.europa.eu/system/files/2025-10/digitaleurotokenbasedofflinemodality_en.pdf" rel="noopener noreferrer nofollow" target="_blank">admits</a> that “the available countermeasures are very limited.” The document concludes that “we will not consider physical proximity as a property of cash that can be reliably enforced in a digital currency.”
Related:&nbsp;<a href="https://cointelegraph.com/news/crypto-urges-sec-see-good-in-blockchain-privacy-tools" rel="noopener noreferrer nofollow" target="_self">Crypto urges SEC to see the good in blockchain privacy tools</a>
<h2 id="private-but-not-like-cash">Private, but not like cash</h2>
The offline digital euro, and the private keys used to manage it, would be stored in the secure elements of certified devices, such as mobile devices and smart cards.
Authorized wallet devices must be <a href="https://data.consilium.europa.eu/doc/document/ST-16695-2025-INIT/en/pdf" rel="noopener noreferrer nofollow" target="_blank">registered</a> with payment service providers using their unique device ID, linking them to an identity for anti-money laundering purposes.
Karel Lannoo, CEO of think tank Center for European Policy Studies, told Cointelegraph that other than integration with private payment systems and choice of the payment system itself, privacy is the biggest issue for the digital euro.
“The actions of Trump have been a big help to have it done quickly. I expect indeed ECB timetable, interaction with merchants, and big roll-out. But communication will be extremely important,” he said, adding:
<blockquote>
 Remember, we are probably [two] years away from start, and outreach to Europeans has not started at all. Remember how early we start with the euro campaigns in 1997!”
</blockquote>
Related:&nbsp;<a href="https://cms.cointelegraph.com/articles/70150?language=1" rel="noopener noreferrer nofollow" target="_self">SEC commissioner says crypto is ‘helping to nudge reassessment’ on privacy</a>

EU council endorses offline and online versions of digital euro

Table of Contents

Cointelegraph

Other articles published on Dec 22, 2025

Join our free newsletter for daily crypto updates!