Eurosystem advances Digital Euro Project toward 2029 launch

The European Central Bank (ECB) has confirmed that the digital euro project is entering its next phase, marking a significant step toward the potential launch of a central bank digital currency (CBDC) for the euro area.

The move follows the successful completion of the preparation phase, which began in November 2023, and lays the technical and strategic foundations for the eventual issuance of a digital euro.

From Preparation to Implementation

Eurosystem advances CBDC Project

The ECB’s Governing Council decision reflects growing political support for digital money across Europe.

Following calls from EU leaders at the October 2025 Euro Summit to accelerate progress, the Eurosystem will now focus on ensuring technical readiness, engaging with market participants, and supporting the ongoing legislative process.

If the Regulation on the establishment of the digital euro is adopted during 2026, pilot testing could begin as early as mid-2027.

The Eurosystem aims to be technically ready for the first issuance by 2029, pending final legislative approval.

ECB President Christine Lagarde described the project as “the next evolution of our shared money,” designed to ensure the euro remains fit for purpose in an increasingly digital world.

“We are modernising euro cash and preparing for digital cash that preserves freedom of choice and privacy,” she said.

A Public Digital Payment Option

As European consumers shift from cash to digital payments, policymakers see the digital euro as a way to guarantee access to a public, risk-free means of payment.

It will complement—not replace—cash, offering the same core attributes: simplicity, reliability, and universal acceptance.

The ECB emphasised that the project will also reinforce Europe’s monetary sovereignty and economic security while supporting competition and innovation in the payments sector.

Private banks and fintechs are expected to play a key role in distributing and integrating the digital euro within existing payment infrastructures.

Costs, Collaboration and Readiness

The total cost of developing the digital euro up to its first issuance is estimated at around €1.3 billion, with annual operating costs projected at roughly €320 million from 2029.

Like physical banknotes, these costs will be borne by the Eurosystem and offset by seigniorage revenue.

Extensive collaboration with merchants, banks, and consumers will continue throughout the next phase.

User research has already highlighted strong demand for a simple, secure and privacy-respecting digital payment option.

As Executive Board member Piero Cipollone noted, the digital euro represents “a collective effort to future-proof Europe’s monetary system”—one that could redefine how Europeans pay, transact, and connect across the single market.