ECB Moves Closer to Launching Digital Euro Pilot

The European Central Bank (ECB) has entered the next stage in developing the digital euro, a project designed to ensure Europe’s currency remains fit for the digital age. The ECB’s Governing Council has approved a new phase aimed at achieving the technical readiness needed for its first pilot issuance.

A final decision on whether to issue the digital euro — and when — will only come after the relevant legislation is passed. According to ECB estimates, if the legal framework is adopted within the next year, a pilot program could begin in 2027, with the first potential issuance expected by 2029.

The ECB emphasizes that the digital euro will preserve freedom of choice and user privacy while safeguarding Europe’s monetary sovereignty and financial security. It is intended to foster innovation, strengthen resilience, and make payments across the euro area more competitive and inclusive. “The euro, our common currency, is a reliable symbol of European unity,” said ECB President Christine Lagarde. “We are working to ensure its most tangible form — euro banknotes and coins — remains suitable for the future, and to prepare for the introduction of digital cash.”

The digital euro will not replace cash but will complement it, bringing the benefits of simplicity, privacy, and accessibility into the digital payments space. Alongside the regulation establishing the digital euro, the ECB also supports the European Commission’s proposal to reinforce citizens’ right to pay with cash.

The total development cost of the digital euro is estimated at around €1.3 billion up to its initial issuance, covering both internal and external components. Once operational, annual running costs are projected at about €320 million from 2029 onward, an expense the Eurosystem will bear as part of its public service role — much like the production and circulation of euro banknotes.

Source: tovima.com