The shift in payment habits towards digital means, accelerated by the pandemic, along with the surge in privately developed cryptocurrencies, has prompted the exploration and development of central bank digital currencies (CBDCs) worldwide. European regulators emphasise the need to preserve the role of central bank money amidst these changes. This chapter critically examines the evolving relationship between the digital euro and the European payments framework. It first conceptualises the role of central banks and central bank money in the payment system, and then explores the legal ecosystem surrounding the digital euro and its integration within current payment-related initiatives. The chapter argues that the governance of the digital euro—specifically, the distribution of roles and responsibilities between public and private sectors and the incentives provided by the central bank to intermediaries—will be fundamental to ensuring its widespread adoption as a reliable public means of payment that complements existing privately-driven payment options. The chapter calls for exploratory public–private cooperation in a context characterised by legal uncertainty and high technological dynamism.