Digital euro, CBDCs & Bitcoin: what’s the difference?

‘Digital money’ means two very different things: the European Central Bank is planning a digital euro, a state-issued form of digital cash. Bitcoin is digital money without an issuer.

What is the digital euro?

The digital euroGlossaryDigital euroA planned digital form of euro cash, issued by the European Central Bank. A pilot is planned for 2027 and a first issuance is possible in 2029 – if the EU adopts the law in 2026 (as of September 2026).In the glossary →× would be a central bank digital currency (CBDC)GlossaryCBDC (central bank digital currency)Digital money issued directly by a central bank – unlike bank balances, which are a claim against a commercial bank. 146 countries and currency areas are exploring a CBDC, but only three have launched one (as of May 2026).In the glossary →× for everyone in the euro area: central bank money, issued and backed by the Eurosystem – like euro banknotes, only digital.^[6]

According to the ECB, the plan is:

• Legal tender: like cash, it would in principle have to be accepted.^[3]
• Free for basic use by private individuals.^[1]
• Online and offline: by phone or card, even without an internet connection.^[1]
• A complement, not a replacement: cash is meant to stay.^[3]
• No programmable money: no one is meant to dictate what you spend your money on. Conditional payments such as ‘money is released only on delivery’ are meant to be possible, though.^[3]
• Holding limit: how much each person may hold is open. At the legislators’ request, the ECB has analysed limits of up to €3,000 per person.^[3]

Among its reasons, the ECB cites dependence on international card providers: more than 60% of euro area countries have no national card scheme of their own for in-store payments.^[3] It estimates the costs at around €1.3 billion for development and about €320 million a year to run.^[3]

Don’t confuse them: digital euro, stablecoin and Bitcoin

The Bundesbank, Germany’s central bank, distinguishes the three as follows:^[6]

• Digital euro: central bank money, backed by the Eurosystem.
• StablecoinGlossaryStablecoinA crypto-asset whose value is meant to be pegged to a currency such as the US dollar or the euro. Unlike bitcoin, a stablecoin has an issuer – its value depends on the issuer keeping its reserves and remaining solvent.In the glossary →×: issued by private companies, with no central bank guarantee. Whether it holds its value depends on how well the company manages its reserves.
• Bitcoin: no institution behind it, a highly volatile price.

Where does the project stand? (As of September 2026)

The digital euro has not been adopted: the European Parliament and the Council of the EU are negotiating the law, and there is no agreement yet.^[4] Only once the law is passed will the ECB decide on issuance. If that happens in 2026, issuance in 2029 would be possible.^[2]

1. Oct 2021 – Oct 2025

   Investigation and preparation

   The ECB examines the concept, drafts a rulebook and selects technology providers.^[2]

2. 28 Jun 2023

   European Commission’s legislative proposal

   The draft regulation on the digital euro is published.^[4]

3. 19 Dec 2025

   Council sets its position

   The member states agree on their negotiating mandate.^[5]

4. 9 Jul 2026

   Parliament confirms its negotiating mandate

   The plenary confirms the opening of negotiations with the Council.^[4]

5. H2 2027 (planned)

   Pilot phase

   The ECB is planning a twelve-month pilot.^[3]

6. 2029 (at the earliest)

   Possible first issuance

   Prerequisite: the law is adopted in 2026.^[2]

CBDCs worldwide: lots of research, little use

According to the Atlantic Council, 146 countries and currency unions are exploring a CBDC, together accounting for more than 98% of global economic output. Only three countries have fully launched one so far: the Bahamas, Jamaica and Nigeria (as of May 2026). The largest project is China’s digital yuan: more than 3.4 billion payments worth around $2.3 trillion by December 2025.^[7]

The USA is taking the opposite route: since an executive order of 23 January 2025, US agencies may not establish or promote a CBDC. Instead, the government backs private dollar-backed stablecoins and explicitly protects self-custody.^[8]

The digital euro and Bitcoin compared

The key difference: who runs the system and sets the rules.

Feature	Digital euro (planned)	Bitcoin
Issuer	Eurosystem, backed by the central bank[6]	none – rules in an open network[9]
Supply	no fixed cap	capped at just under 21 million BTC[10]; 20,093,887 BTC issued so far
Value	always 1 digital euro = €1	fluctuates heavily[6]; currently $85,533 per BTC
Legal tender	yes, planned[3]	no, not in the euro area
Holding limit	planned, amount open[3]	none
Who keeps the account?	your bank or a public body[1]	you or a provider of your choice
Privacy	promised by the ECB; the details are set by law (see below)	pseudonymous, all transactions publicly visible[9]
Available	2029 at the earliest[2]	since 2009

The Bundesbank’s view: crypto assets such as Bitcoin have no institution behind them, no intrinsic value and can fluctuate heavily; the digital euro, by contrast, would be stable central bank money with the central bank behind it.^[6] Bitcoin supporters turn the argument around: because no institution stands behind it, no one can expand the supply or block payments either. If you hold your own bitcoin, you don’t need a bank to make a transfer.^[9]

Privacy: promises and fears

What the ECB and the Bundesbank promise

• From the payment data it receives, the ECB says it could not tell who you are or what you buy.^[1]
• Offline, only the payer and payee are meant to know the details, much like with cash.^[3]
• Access to payment data would, as today, only be possible via payment service providers and only on a legal basis.^[6]

What critics fear

Critics, including many Bitcoin supporters, counter that privacy with the digital euro depends on the law, not the technology – and what one law rules out today, a later one could allow. A holding limit, they add, requires someone to know which balance belongs to whom. These are fears, not documented intentions; the ECB stresses the opposite.

And Bitcoin?

Bitcoin isn’t anonymous either: all transactions are public; only the link to individuals is missing.^[9] If you buy on an exchangeTermExchange (crypto exchange)A trading platform where buyers and sellers trade bitcoin with each other via an order book.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary →AdLicensed providers with a paid linkProviders from our comparisonKrakenExchange · MiCA (Central Bank of Ireland)Visit Kraken* (paid link, opens in a new window)BitvavoExchange · MiCA (AFM, Netherlands)Visit Bitvavo* (paid link, opens in a new window)CoinbaseExchange · MiCA (CSSF, Luxembourg)Visit Coinbase* (paid link, opens in a new window)All 7 compared – including non-partners →*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.× with identity verificationGlossaryKYC (Know Your Customer)The obligation of regulated providers to identify you before the business relationship starts and to ask, for example, about its purpose and, where necessary, the source of your money. In Germany, the legal basis is the Money Laundering Act (GwG).On the learning path: Stage 4 · Step 3 – Buying Bitcoin →In the glossary →×, your addresses are linked to you. More on this in Privacy with Bitcoin.

What does this mean for you?

The digital euro and Bitcoin are not direct competitors. The digital euro would be digital cash in euros: stable, practical, but centrally controlled. Bitcoin is a scarce monetary network without an issuer: independent, but with price risk and personal responsibility. Why this independence matters to many people is explained in Bitcoin is freedom.

• You don’t need to do anything. The digital euro doesn’t exist yet, and whether it comes will only be decided after the legislative process.
• Beware of scams: anyone offering you ‘digital euros’ to buy or exchange today is not to be trusted. Typical scams are explained in Spotting & avoiding scams.

What’s next?