The cost of implementing the digital euro could reach €18 billion, according to a new study, far exceeding previous figures cited by the European Central Bank (ECB).
The updated cost study on the digital euro was sent by the Hellenic Bank Association to Greek banks, and subsequently shared by Greek business outlet Newmoney, as part of wider efforts led by the ECB to accelerate the rollout of the digital currency across Europe.
According to the study, conducted by advisory firm PwC, the cost for the European financial sector is estimated at €18bn, a figure described as substantial given the scale of the required transformation.
By contrast, the ECB’s own internal calculations placed the cost significantly lower, at between €4bn and €5.7bn, representing a figure between 4.5 and 3 times lower than PwC’s estimate.
However, PwC returned with a supplementary report, maintaining its original assessment and reinforcing concerns about the scale of investment required.
The high cost is largely driven by IT infrastructure projects and transaction security requirements, both of which are essential to support the functioning of the digital currency.
The digital euro is described as the digital equivalent of cash, functioning like an “electronic banknote” issued directly by the European Central Bank rather than commercial banks, offering both security and convenience in everyday transactions.
Its primary objective is to facilitate daily payments with ease and safety, allowing users to store funds in a digital wallet on mobile devices or dedicated cards, eliminating the need for physical cash.
Funds held in digital euro form would be fully guaranteed by the central bank, while basic usage would remain free of charge, enhancing accessibility.
The system would operate through an application enabling contactless payments in shops, online purchases, and instant transfers between users, while also offering the ability to function without an internet connection, preserving a higher degree of privacy.
“Like an electronic banknote, it will be issued directly by the central bank,” the study explained.
In this context, cybersecurity and anti-money laundering safeguards are identified as major cost drivers, requiring substantial investment to protect transactions and ensure regulatory compliance.
The study involved 19 banks and banking groups across the eurozone, representing a wide range of sizes, regions, and business models, all using a harmonised methodology.
These banks confirmed earlier cost estimates, highlighting that the digital euro card requires entirely new software, protocols, and certification processes, while ATMs will need complex modifications and point-of-sale terminals will require software updates and re-certification.
Despite efforts to reduce costs through the reuse of existing infrastructure and outsourcing arrangements, the overall financial burden remains significant.
Even under favourable assumptions, the majority of investment stems from new IT systems, processes, and infrastructure that cannot be avoided, limiting the potential for cost reductions.
The study emphasised that the digital euro may appear to be a simple payment method at first glance, but in reality involves considerable operational complexity across all banking functions.
A key component of the system is the introduction of a physical digital euro card, which would be linked to a new type of account and operate within a new framework settled in central bank money rather than commercial bank funds.
This would require entirely new digital architecture, including encryption systems, messaging protocols, and certification procedures, all of which must first be defined at a European level and then adopted by service providers.
The ATM and branch infrastructure would also need to incorporate technologies such as NFC and QR codes to enable interaction with digital euro wallets and cards.
At the point of sale, hardware and software upgrades will be necessary across all terminals, ensuring compliance with the digital euro system and its security standards.
The calculation of transaction fees within the Digital Euro Services Platform (DESP) is expected to account for only 1 per cent of total estimated costs, although banks will still need to process, validate, and reconcile these charges within their internal systems.
This will require further adjustments to billing, accounting, and reconciliation infrastructure, adding to the overall cost burden.
The study also highlighted disparities across the banking sector, noting that larger banks may secure more favourable terms with suppliers, while smaller institutions could face proportionally higher costs.
Uncertainty also remains regarding whether third-party providers will be ready on time, forcing banks in some cases to develop solutions internally to avoid delays in implementation.
Outsourcing itself introduces additional expenses, including vendor selection, governance, and technical integration, all of which require further investment.
The participating banks estimated implementation costs exceeding €2bn within the sample alone, with projections for the entire eurozone based on a top-down methodology covering 877 entities under ECB supervision, excluding certain non-retail and dependent institutions.
In terms of timing, European co-legislators are expected to adopt the digital euro regulation during 2026, paving the way for a pilot phase and initial transactions by mid-2027, with the entire Eurosystem potentially ready for a first issuance by 2029.
The technical implementation phase, running from October 2025 to September 2027, focuses on developing specifications and conducting final testing, including pilot applications.
The ECB’s ultimate goal remains the full introduction of the digital euro by 2029, following the completion of all necessary preparations for security and functionality.
Meanwhile, Cyprus further deepened its engagement to the project in February by hosting a high-level event in Nicosia titled Presenting the Digital Euro in Cyprus, bringing together policymakers, bankers, and ECB officials.
“Today’s conference proves that Cyprus, although a small country, can play an active and substantial role in the dialogue,” said European Parliament member Michalis Hadjipantela.
“In a rapidly changing world, Europe must respond decisively to modern challenges,” said ECB executive board member Piero Cipollone, underlining the urgency of the initiative.
“The digital euro is about ensuring a secure European payment option,” said Central Bank of Cyprus governor Christodoulos Patsalides, describing it as a tool to maintain stability in an increasingly digital economy.
Last year, the Central Bank of Cyprus (CBC) reaffirmed its strong backing for the project, outlining the next phase of preparations and stressing the strategic importance of adoption.
“The adoption of the digital euro is becoming imperative as digital payments are increasing rapidly,” said CBC governor Christodoulos Patsalides.
“The path towards the digital euro is a pivotal development for the modernisation of the European financial system,” he added, pointing to benefits including greater security, transparency, and resilience.
The CBC has already taken a proactive role in this space by convening payment service providers and stakeholders in late 2025, in order to prepare for upcoming ECB decisions and legislative developments, including on the digital euro.
Moreover, in December of the previous year, Cyprus also signalled its institutional commitment at the European level, identifying the digital euro as a priority within its EU Council presidency agenda, with a focus on finalising the legislative framework.
Cyprus has consistently supported and actively contributed to the digital euro project, positioning itself not as a late entrant but as an engaged participant in shaping Europe’s digital financial future.
