ECB Advances Digital Euro Project Towards Potential 2029 Launch

The European Central Bank (ECB) has announced the transition to the next phase of its digital euro initiative, marking a significant step toward potentially issuing a central bank digital currency (CBDC) by 2029.

This decision of its Governing Council follows the successful completion of the preparation phase, which began in November 2023 and laid the groundwork for technical, legislative, and market engagement efforts. It also aligns with the stated wishes of European leaders at October’s Euro Summit to speed up progress towards a digital euro.

The new phase of the Eurosystem will focus on technical readiness, market collaboration, and supporting the legislative process. If EU legislation on the regulation of the digital euro is adopted in 2026, pilot testing could begin as early as 2027.

Estimated development costs until issuance are €1.3 billion, with annual operating costs projected at €320 million. These expenses are expected to be offset by seigniorage, in a similar way to physical banknotes.

ECB President Christine Lagarde highlighted how the digital euro is a symbol of pan-European collaboration and shared values.

“The euro, our shared money, is a trusted sign of European unity,” Lagarde said. “We are working to make its most tangible form — euro cash — fit for the future, redesigning and modernizing our banknotes and preparing for the issuance of digital cash.”

The digital euro aims to complement cash and offer privacy, reliability, and accessibility across the euro area while enhancing payment system resilience and fostering innovation.

ECB Executive Board member Piero Cipollone added: “It will enhance the resilience of Europe’s payment landscape, lower costs for merchants, and create a platform for private companies to innovate, scale up and compete.”