ECB Projects Digital Euro Launch by Mid-2029, Signaling New Phase for European Payments

Quick Breakdown:

• Piero Cipollone, of the European Central Bank, stated that a digital euro is unlikely to be launched before mid-2029, despite ongoing preparations.
• The primary reason for the delay is the European Parliament, which needs to pass the necessary legislation for the project to move forward.
• Despite the delays, the ECB is continuing its work and plans to decide on the next phase of the project in October. A recent compromise among EU ministers includes imposing holding limits on the potential digital currency.

ECB Confirms Mid-2029 launch target for Digital Euro

The European Central Bank (ECB) confirmed that a digital euro is realistically expected to launch by mid-2029. ECB Executive Board member Piero Cipollone detailed this timeline during a Bloomberg Future of Finance event. Cipollone highlighted the importance of recent breakthroughs, including euro-area finance ministers’ agreement on customer holding limits for the new digital currency.

The European Parliament, along with the European Council and European Commission, is expected to have finalized its position on the digital euro legislative framework by May 2026. Following approval, the ECB anticipates needing approximately two and a half to three years to build, test, and prepare for the rollout of the digital euro infrastructure.

Progress and Oversight on Digital Euro Development

Significant momentum has built around the digital euro project, aimed at reducing Europe’s reliance on foreign payment systems like Visa and PayPal and countering the growing influence of dollar-backed stablecoins. A key milestone will be a progress report expected from a Member of the European Parliament on October 24, 2025. After this, lawmakers will have six weeks to propose amendments, followed by approximately five months of legislative discussion before reaching a general agreement.

Cipollone emphasized that the digital euro will complement cash and existing payment methods, preserving financial inclusion for all Eurozone citizens. He also stressed the ECB’s commitment to privacy protections, including an offline mode to maintain cash-like anonymity, addressing key concerns among lawmakers and the public.

Notably, Poste Italiane is tipped to play a key role in the rollout, specifically handling the “last mile” delivery to the public due to its extensive network and existing financial infrastructure. While the ECB aims for the digital euro to complement cash and provide a sovereign, future-proof currency alternative to private digital payments, the article also highlights a significant challenge: a recent survey found that European households are generally indifferent to the proposed central bank digital currency (CBDC).

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