The European Central Bank published an update on its digital euro project, setting out plans to prepare for a potential issuance by 2029, conditional on European co-legislators adopting the necessary regulation in 2026. It indicated that preparatory steps such as pilot exercises and initial transactions could start as early as mid-2027. The ECB positioned the digital euro as a public, digital complement to euro banknotes and coins, intended to be free, simple and inclusive, accepted for digital payments across the euro area, and offering cash-like privacy protections. The planned design would support both online payments and offline transactions without an internet connection. The update also linked the project to the European Commission’s Single Currency Package, including parallel work to safeguard access to cash and the ECB’s development of a next generation of euro banknotes, and argued that a digital euro would reduce reliance on non-European payment providers while complementing private payment solutions rather than competing with them. Looking ahead, the ECB characterised 2026 as pivotal for completing the legislative framework and accelerating preparatory work, with a pilot exercise planned to begin in 2027.
European Central Bank 2025-12-09
European Central Bank sets 2029 horizon for potential digital euro issuance subject to 2026 legislation
The European Central Bank (ECB) updated its digital euro project, aiming for potential issuance by 2029, contingent on regulatory approval in 2026. The digital euro is envisioned as a public, digital complement to cash, supporting online and offline transactions with privacy protections. The ECB links this initiative to the European Commission’s Single Currency Package, emphasizing reduced reliance on non-European payment providers and complementing private solutions.