Strategic and Technological Aspects of the Digital Euro: Between Regulatory Challenges and Academic Reflection

Relevance. The global digitalization of finance and the advancement of technologies are driving central banks to implement central bank digital currencies (CBDCs), which in turn create new challenges for monetary and payment systems. The European Central Bank's digital euro project serves not only as an innovative response but also as a strategic tool to safeguard monetary sovereignty, ensure payment inclusion, and strengthen monetary security amid digital transformation. It has become critically important to analyze the legal, architectural, and social dimensions of this process within the context of public administration and the institutional framework of the EU. The purpose of this study is to provide a comprehensive analysis of the strategy for implementing a central bank digital currency as an integral part of the digital transformation of the European Union’s financial system, under the current challenges of public governance, economic security, and institutional development. The study also aims to identify the role of cash within this new financial paradigm.Results. The paper examines the major stages of the digital euro project, from conceptual research to the preparation phase for implementation (November 2023 - end of 2025). The analysis reveals that: the digital euro complements rather than replaces cash, preserving attributes such as privacy and offline availability; the project’s architecture takes into account user interests, technological security, and the EU’s technological autonomy; the regulatory framework, involving working groups and stakeholders, contributes to overall transparency and legitimacy of implementation.Conclusions. The digital euro is a strategic initiative that combines technological innovation with the strengthening of financial sovereignty. Its success depends on a clear regulatory and legal framework, changes in the banking system structure aligned with institutional interests, adherence to high standards of cybersecurity and privacy, effective engagement with the public and business entities, and an inclusive approach to populations with limited access to digital services.