ECB Pushes Digital Euro Rollout Forward to 2029

• ECB targets 2029 for digital euro rollout to strengthen EU financial sovereignty.
• Project costs reach €1.3B as Europe accelerates work on CBDC readiness and laws.
• Digital euro to coexist with cash, offering citizens secure, state-backed payments.

The European Central Bank (ECB) has set 2029 as the official launch year for the digital euro after its Governing Council approved the final phase of preparations. The announcement, made by ECB President Christine Lagarde in Florence, follows a request from the European Council to accelerate development. The digital euro aims to safeguard the EU’s financial sovereignty and offer a state-backed alternative to private digital payment systems.

EU to Secure Payment Sovereignty

According to Christine Lagarde, the ECB’s plan will move through a pilot program starting in 2027, pending legislative approval in 2026. The goal is to ensure that digital payments remain under European control, not reliant on foreign companies or overseas stablecoin issuers. 

The European Union views the project as essential to keeping the euro relevant as cash use continues to decline. Behind the scenes, pressure is growing from policymakers who want Europe to catch up in the global central bank digital currency (CBDC) race. 

Countries like China and India have already moved in testing digital currencies for retail use. The ECB’s move puts Europe in a strong position as a regulated and transparent force in global finance, prioritizing public oversight instead of private control.

After starting development in November 2023, the digital euro project is now entering its technical phase. This stage will focus on building a secure system, testing how it connects with other platforms, and working closely with financial industry partners to prepare for full launch.

ECB Executive Board member Piero Cipollone stated that the effort will “future-proof Europe’s monetary system” by allowing people to enjoy the same trust in digital form as in cash.

A Major Investment in Europe’s Financial Independence

The ECB estimates that the digital euro’s development will cost around €1.3 billion through 2029, with annual operational costs expected to reach €320 million once live. These figures reflect the project’s scale, which aims to build a publicly controlled digital payment network across all eurozone countries. The funding shows the EU’s intention to maintain its monetary independence amid rising influence from private payment platforms.

Work on the digital euro is now on three main areas: technology development, collaboration with payment providers, and legislative support. The ECB has already completed a draft rulebook and selected its infrastructure partners to maintain the 2029 target. If the European Parliament and Council pass the required laws in time, the pilot phase will begin in mid-2027.

The project’s next phase will also test how the digital euro can operate alongside physical cash. Lagarde emphasized that “banknotes will continue to circulate,” but the digital euro will provide citizens with “click cash,” offering both convenience and state-backed reliability. The ECB plans to make the digital euro accessible through wallets and cards for instant payments within the eurozone.

Related: ECB Pushes Digital Euro to Protect Autonomy Across Bloc

Global Context and Legislative Challenges

Globally, over 130 countries, which are more than 98% of global GDP, are exploring or testing CBDCs, according to the Atlantic Council. China’s digital yuan is already in public use across major cities, while India’s digital rupee pilot now includes banks and consumers. 

The United States continues to research the concept but faces delays due to privacy and policy concerns. The EU’s approach is cautious yet determined. While earlier momentum slowed after the 2024 European elections, new political backing has helped revive progress. 

President Donald Trump’s endorsement of dollar-based stablecoins has further motivated European officials to advance their own digital currency. Despite the EU’s complex approval process, involving the Commission, Parliament, and Council, officials are optimistic about keeping the timeline on track.

Banks and financial groups have expressed skepticism, questioning whether a digital euro is necessary when existing payment services already function efficiently. Nonetheless, the ECB maintains that the initiative is about sovereignty, not replacement. It aims to ensure that European citizens retain access to a public digital payment method as the world moves toward cashless economies.

When it launches, the digital euro will work alongside current payment systems, giving people another safe option supported by the European Central Bank. The ECB has made it clear that this new form of money won’t replace cash or coins but will act as a digital version to strengthen Europe’s payment network.

Meanwhile, fast-tracking the project shows Europe’s push to stay financially independent and keep up with digital innovation. With €1.3 billion set aside for development and plans running through 2029, the digital euro is one of the EU’s biggest projects aimed at modernizing how money moves while keeping control within its own system.