In the light of the extensive research and rapid developments on sovereign digital currencies (CBDCs), global central banks are exploring their potential as a new form of money, legal tender, instrument of monetary policy, and an alternative to private “cryptocurrencies”. Relevant exploration involves careful consideration of their inherent risks and potential systemic impact. This book chapter examines the critical role of governance of CBDC issuers and schemes, which will significantly influence the success of central banks’ efforts. Governance concerns arise due to the complex interplay between conventional central banking frameworks (involving their institutional mandate, independence, internal structure, transparency and accountability) and the innovative characteristics and challenges posed by CBDCs. The chapter focuses on the European Central Bank’s (ECB) Digital Euro project, analysing the governance challenges tied to its issuance, regulation and supervision. It highlights the Eurosystem’s evolving role and the additional tasks and responsibilities that come with it. It also considers the anticipated significant involvement of private sector intermediaries (in particular, credit institutions, payment institutions, e-money institutions) in the distribution and operational management of the Digital Euro, which raises questions regarding potential indirect delegation of central bank decision-making or regulatory powers. The governance implications of that role for the ECB are examined in detail, including the extent to which its current institutional framework is fully equipped to manage the new responsibilities. Some concrete proposals are also provided for further design and operational safeguards and enhancements to the governance structure for the Digital Euro. Incorporating insights from recent technical and legislative initiatives, those enhancements and risk management tools are addressed to the ECB and its relationships with the digital euro system participants, distribution and tokenization platforms and technology services providers. They aim to achieve advanced security, resilience, efficiency and wide public acceptance of the European CBDC scheme, and thus, to balance the need for innovation with the priorities of monetary sovereignty, financial stability and public interest.