Digital Euro Coming Soon? ECB Gears Up for 2029 Rollout

The European Central Bank (ECB) has announced that it is moving to the next stage of its digital euro project, setting the groundwork for a possible launch in 2029. The ECB said that if European lawmakers approve the necessary legislation in 2026, a pilot phase could begin as early as 2027.

The move comes after the completion of a two-year preparation phase that began in November 2023. During that time, the ECB and national central banks worked on the technical and operational groundwork for a potential digital version of the euro.

Focus of the next phase

According to the ECB, the next phase will focus on three main areas. It will involve building the system’s technical infrastructure, working with payment providers and merchants to test the platform, and supporting the EU’s legislative process. The central bank said it will proceed flexibly, ensuring that its preparations remain aligned with the progress of the legal framework.

ECB President Christine Lagarde said the project aims to make Europe’s money “fit for the future” as payment habits shift toward digital transactions. She described the digital euro as a complement to cash, meant to provide citizens with a secure and accessible public payment option in an increasingly digital economy.

The cost and the clock

Executive Board Member Piero Cipollone, who leads the ECB’s digital euro task force, said the initiative is “not just a technical project but a collective effort to future-proof Europe’s monetary system.” He added that the digital euro could strengthen Europe’s payment infrastructure, lower costs for merchants, and support innovation among private companies.

The ECB estimates that developing the digital euro will cost around €1.3 billion ($1.5 billion) until its first issuance, with annual operating costs of about €320 million per year from 2029. The Eurosystem, which includes the ECB and national central banks, will pay for these costs, just like it pays to print banknotes.

The ECB’s final decision on whether to issue the digital euro will depend on European co-legislators adopting the required regulation. If approved, initial real-world transactions could begin during the pilot phase in mid-2027, paving the way for a potential first issuance in 2029.

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