In a commentary, the Central Bank of Latvia outlined renewed progress toward a digital euro after trilogue negotiations among the European Parliament, Council of the European Union and European Commission formally began in July. Adoption of the EU regulatory framework is expected by the end of 2026, which could allow the European Central Bank Governing Council to make a formal decision and launch pilot projects by year-end, with introduction planned for 2029. This marks progress from earlier uncertainty over whether legislation could be agreed in time to support that timetable. The digital euro would complement cash as central bank money and provide a public, pan-European alternative for everyday payments. European payment service providers would distribute it, while a holding limit would prevent it from becoming a substitute for bank deposits. Users could link it to commercial bank accounts to cover payments above their digital euro balance. Offline functionality would support payments during connectivity failures or crises, while online payments would prevent the Eurosystem from identifying individual users and offline transactions would offer privacy comparable to cash.
Central Bank of Latvia outlines digital euro path to potential 2029 launch as EU trilogue advances
The Central Bank of Latvia outlined a path toward a potential 2029 digital euro launch after EU trilogue negotiations began in July. Adoption of the regulatory framework could enable an ECB decision and pilot projects by the end of 2026. The digital euro would complement cash, carry a holding limit and support private offline payments during connectivity disruptions.