A failure in the ECB’s payment system has raised new concerns among lawmakers about the regulator’s ability to implement the digital euro (CBDC) project, Reuters reports.

At the end of last month, a malfunction in the Target 2 (T2) system caused a one-day delay in transactions. The issue was exacerbated by an error in the initial diagnosis made by the ECB’s technical specialists.

ECB representatives clarified that the digital euro would be architecturally closer to the TIPS instant payment system, which “processes millions of small transfers 24/7 and has proven to be reliable.” On the day of the incident, TIPS experienced no significant problems, the central bank emphasized.

Nevertheless, four out of eight groups in the European Parliament expressed concern over the incident, arguing that it raises doubts about the ECB’s reliability in developing the digital euro.

ECB President Christine Lagarde stated that the CBDC is scheduled for launch in October 2025, provided the necessary legislation is passed by then. She assured that all technical and legal preparations are progressing according to schedule.

Lagarde stressed that the project requires approval from key stakeholders: the European Parliament, the EU Council, and the European Commission. She also emphasized that the digital euro is essential at both wholesale and retail levels.

Earlier, in February, a study by OMFIF revealed declining interest among central banks in issuing CBDCs. In 2022, none of the surveyed regulators reported a loss of interest, but by 2024, 15% indicated a decrease in enthusiasm for digital currencies.