Digital euro could start in 2029 – ECB
A digital euro could begin operating in 2029, according to the European Central Bank (ECB), which has decided to move to the next phase of the project.
The ECB said that the Governing Council’s decision today (30 October) followed the successful completion of that was launched in November 2023.
The bank stressed, however, that it would take a final decision on whether and when to issue the digital currency only after the necessary legislation had been adopted.
Acceleration call
The European Commission put forward a package of legislation on the issue in 2023, and the ECB expects the EU Council and European Parliament to approve a regulation on the issue next year.
The ECB says that it has engaged with EU institutions throughout the process, providing technical input to support the legislative process.
A summit of EU leaders recently called for an acceleration of progress on the issue.
Pilot in 2027
According to the central bank, a pilot exercise and initial transactions could take place in mid-2027 if legislation is passed.
“The whole eurosystem should then be ready for a potential first issuance of the digital euro during 2029,” it stated.
“A digital euro will preserve Europeans’ freedom of choice and privacy and protect Europe’s monetary sovereignty and economic security. It will foster innovation in payments and help make European payments competitive, resilient and inclusive,” the ECB said.
Offline functionality
The bank added that it was also supporting the European Commission’s proposal to reinforce the right to pay with cash.
The ECB has signed framework agreements with five external providers for the project.
It has also pledged to ensure that the app will be usable by everyone – including people with physical disabilities, low digital skills, or learning impairments.
The preparation phase also focused on designing an offline functionality, which will allow payments to be made even when internet connectivity is lost and provide “a cash-like level of privacy”.