ECB eyes 2029 digital euro launch, awaits EU legal basis
The European Central Bank (ECB) plans to keep working on a digital euro after the current preparation phase ends this month, with officials expected to back continued work at a meeting in Florence this week.
A planned 2029 launch remains contingent on a European Union legal framework allowing issuance for retail use. National governments and the European Parliament have not yet reached agreement on the draft law, leaving design choices and privacy safeguards unresolved.
The ECB began a two-year preparation phase in 2023 following an earlier investigation period. The European People’s Party remains a key holdout, with some members favoring private-sector alternatives.
Policymakers have raised concerns about Europe’s reliance on U.S. payment firms such as Visa, Mastercard and PayPal. They are also watching the growth of dollar-backed stablecoins, which have drawn support from U.S. President Donald Trump, and warn these instruments could gain ground in Europe without a public digital option.
ECB President Christine Lagarde has urged faster progress. An ECB spokesperson declined to comment. ECB Executive Board member Piero Cipollone has described a mid-2029 rollout as realistic, noting that “the middle of 2029 could be a fair assessment.”
The retail digital euro is intended as an electronic form of central bank money for everyday payments, distributed by commercial banks and payment providers. Offline payments are being explored and may offer enhanced privacy.
Wholesale applications focus on interbank and securities settlement. On this side, in July the ECB approved a plan to allow distributed-ledger-technology transactions to settle in central bank money, aiming to support DLT platforms used by banks and market infrastructures.
As GNCrypto wrote previously, Cipollone explained that the digital euro is designed to operate alongside cash on European infrastructure, with commercial banks handling distribution while deposits remain in the banking system.
Policymakers have raised concerns about Europe’s reliance on U.S. payment firms such as Visa, Mastercard and PayPal. They are also watching the growth of dollar-backed stablecoins, which have drawn support from U.S. President Donald Trump, and warn these instruments could gain ground in Europe without a public digital option.
ECB President Christine Lagarde has urged faster progress. An ECB spokesperson declined to comment. ECB Executive Board member Piero Cipollone has described a mid-2029 rollout as realistic, noting that “the middle of 2029 could be a fair assessment.”
The retail digital euro is intended as an electronic form of central bank money for everyday payments, distributed by commercial banks and payment providers. Offline payments are being explored and may offer enhanced privacy.
Wholesale applications focus on interbank and securities settlement. On this side, in July the ECB approved a plan to allow distributed-ledger-technology transactions to settle in central bank money, aiming to support DLT platforms used by banks and market infrastructures.
As GNCrypto wrote previously, Cipollone explained that the digital euro is designed to operate alongside cash on European infrastructure, with commercial banks handling distribution while deposits remain in the banking system.
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