The European Central Bank (ECB) has announced plans to initiate a pilot for a digital euro in 2027, with a full launch projected for 2029. This update marks a significant advancement in a multi-year project, as the ECB completes the preparation phase that began two years ago and shifts focus toward ensuring the necessary technical infrastructure is in place for the inaugural issuance.
The decision to accelerate this initiative comes amid increasing geopolitical tensions, particularly concerns regarding Europe’s dependence on major payment networks such as Mastercard and Visa, especially in light of challenges from the United States under the previous administration.
According to the ECB, “A digital euro will safeguard the freedom of choice and privacy of Europeans, while also fortifying the region’s monetary sovereignty and economic security.” The institution is currently awaiting action from European co-legislators, who are expected to adopt regulations for the digital euro by 2026. This regulatory approval will facilitate pilot testing and initial transactions in mid-2027, setting the stage for the first issuance in 2029.
ECB President Christine Lagarde emphasized the significance of the euro as a symbol of European unity, noting, “We are committed to evolving its most tangible form—cash—into the future by redesigning our banknotes and preparing for the issuance of digital currency.”
As the process unfolds, the Eurosystem will concentrate on three crucial areas: technical readiness, stakeholder engagement, and legislative support. Financial estimates indicate that the total cost for development, incorporating both internal and external elements, will be approximately €1.3 billion leading up to the first issuance, with annual operating costs projected at around €320 million thereafter.