The Governor of the Bulgarian National Bank on euro adoption, first impressions from ECB meetings, and how the change will affect people’s daily lives
Highlights:
- “Participation as an observer at the ECB gives us valuable experience even before the formal accession.”
- “With the euro, Bulgaria does not lose but gains sovereignty – from a follower to a co-decision-maker.”
- “From day one, there will be enough euros for businesses and citizens.”
- “The change in everyday life will be felt mostly as convenience and security.”
– Mr. Radev, you are already attending ECB Governing Council meetings as an observer. What has impressed you the most, and how will this help Bulgaria?
This is a very valuable experience for the Bulgarian National Bank. I see firsthand how the decision-making process functions – thorough, analytical, and with a vision for the entire European economy. The topics cover everything – from inflation and monetary policy to financial stability and payment systems. This participation is a natural continuation of the process we started years ago – building expertise, institutional preparation, and culture. Thus, on January 1, 2026, we will not be starting from scratch – we will be ready and integrated.
– What is the biggest challenge for the BNB in this preparation?
To ensure full readiness within a strict timetable. This includes institutional changes, legal convergence, logistics, but also something else—trust. People must be convinced that the process is well-managed and transparent. We have already taken serious steps—the legal framework has been aligned, secondary legislation has been adopted, and preparation is on track. But the scale of the task remains large and requires constant discipline and coordination.
– And personally, what is the hardest part of this transition for you?
The hardest part is ensuring stability and predictability in a time of significant change. Technical tasks have solutions – they are a matter of organization and resources. The greater challenge is trust – society must know that the process is under control and clear. In this context, the central bank must be an anchor of stability – through professionalism, consistency, and clear communication.
– What are the critical steps at the moment?
There are several, all on schedule:
- Legal convergence is fully completed.
- Euro banknotes have already arrived and are stored in BNB vaults.
- Minting of Bulgarian euro coins is in an active phase.
- Integration into European payment systems is practically complete – currently at the testing and simulation stage.
- We are working in constant coordination with the ECB and other European institutions.
– Will there be enough euros in circulation from day one?
Yes, this is a key priority. Commercial banks will be pre-supplied in order to provide cash for businesses and citizens from day one. The BNB already has the necessary quantities of euro banknotes. We are also preparing euro coins. We are working with Bulgarian Posts to reach even the most remote areas. There will be no liquidity issues.
– In society, there are fears that Bulgaria will lose its monetary sovereignty. How do you respond?
It is not about loss, but transformation. Under the currency board, we follow ECB policy but without a vote. With the euro, we will sit at the table where decisions are made. Bulgaria will have its representative on the ECB Governing Council – an entirely different participation level.
– How will the BNB's role change after the euro's introduction?
We will be part of the Eurosystem and participate in forming standard monetary policy. However, we will also retain a number of key national functions—macroprudential policy, oversight of payment infrastructure, and management of international reserves. In other words, the BNB’s role will not shrink but expand—from national to European.
– Are we ready for the change in payment systems?
Yes. We are integrating into the Eurosystem’s TARGET services – TARGET2 and TIPS. We conduct tests, simulations, and training with banks and payment service providers. The goal is clear – from January 1, 2026, everything must work smoothly for businesses and citizens without interruptions or difficulties.
– Are there risks for banking stability after the switch to the euro?
No. The banking system is stable – well-capitalized, highly liquid, and with sustainable profits.
We must also remember something significant – we are already part of the Banking Union. The largest banks are under direct ECB supervision; the rest are under BNB but within the standard mechanism. We have all the European tools for stability and protection.
– What will change in banking supervision?
With accession to the Banking Union in 2020, we already placed the largest banks under direct ECB supervision. This works well. With the euro, our status will be fully aligned with other eurozone central banks. We will have even stronger participation in strategic decisions at the European level.
– What have you learned from the experience of Croatia, Slovakia, Lithuania, and others who have already gone through this path?
That preparation must be timely, disciplined, and well coordinated. And that communication with society is crucial – there must be clear messages to avoid speculation and misunderstandings.
We are applying these lessons. In some areas, especially the technical ones, we are even ahead of where other countries were at this stage. The most important thing is for the transition to be successful, predictable, and publicly supported.
– And a more human question – how will Bulgarians feel the change in their daily lives?
The most tangible will be convenience. There will be no need for currency exchange, travel, and shopping across the eurozone will be done with the same money. Of course, there are always concerns that prices may rise. However, the experience of other countries shows that if the transition is well managed and closely monitored for abuses, the effect is limited. The most important thing is transparency – for example, showing prices simultaneously in levs and euros during the transition period.
– And personally, how do you see this historic moment for Bulgaria?
I have invested all my experience and expertise in this project to support the collective effort. Bulgaria is taking a strategic step forward—from the periphery to the core of the European Union.
As central bankers, we are obliged to guarantee stability and predictability. But as a citizen, I also see it as a symbol – Bulgaria is now part of the heart of Europe.
