ECB targets digital euro rulebook by summer ahead of 2027 pilot

The European Central Bank plans to publish a rulebook for a potential digital euro by this summer and start a 12-month pilot in the second half of 2027. Executive Board member Piero Cipollone outlined the timetable in a briefing to European Union lawmakers, with the schedule intended to let banks, payment firms and merchants prepare systems ahead of any issuance decision around 2029.

Once published, the standards would serve as a common set of technical rules that market participants can embed in payment terminals and apps. The ECB plans to work with banks, payment service providers and merchants so new hardware and software can ship with the needed functions pre-installed. The central bank expects the EU legal framework in 2026.

The pilot is set to test person-to-person and point-of-sale transactions in a controlled environment. The ECB opened a call in March for licensed payment service providers to participate. The aim is to be technically ready for a potential issuance decision around 2029, depending on the legislative outcome.

Earlier analysis by the ECB estimated that introducing a digital euro could cost EU banks €4 billion to €6 billion over four years, or about 3% of their annual information technology maintenance budgets. Cipollone argued that any near-term costs should be weighed against longer-term effects such as retaining more merchant fees in Europe and scaling European payment schemes.

Under the design, the digital euro would be a public payment infrastructure that private intermediaries use to offer wallets and services. It would not be delivered directly by the central bank to consumers. The goal is to provide pan-European payment options and lower reliance on international card networks. Co-badged cards and bank wallets would be able to switch between domestic schemes and the digital euro across the euro area.

Cipollone reiterated that a digital euro would complement cash and bank deposits, not replace them. Accessibility features are being built into the reference app, including voice commands and large-font display options, to broaden usability.

Work is also under way to keep central bank money at the core of wholesale markets. The ECB’s Pontes project is testing settlement of tokenized securities in central bank money across different distributed-ledger platforms, and the Appia roadmap sets out steps for a tokenized European financial ecosystem. Central bank money should remain the “anchor” for future wholesale transactions, according to Cipollone. In a separate address, he described how tokenized central bank money could serve as a settlement asset for stablecoins and tokenized deposits.

The ECB’s timeline foresees standards publication by summer, EU legislation expected in 2026, a pilot beginning in late 2027 and technical readiness for a potential issuance around 2029. Any launch would depend on lawmakers approving the legal framework. The pilot is meant to validate technology, user experience and market integration before a decision.