Timeline and Objectives
The digital euro could be ready for the public around mid-2029, according to ECB Executive Board member Piero Cipollone. This timeline follows a key milestone: the conclusion of the technical preparation phase is expected by October 2025. Following this, a political agreement on the necessary legislation is anticipated in early 2026. The actual launch date, however, will depend on the pace of the legislative process and the readiness of the required infrastructure.
The project’s core goals are to provide citizens and merchants with a digital form of central bank money, reduce Europe’s reliance on international card schemes, and ensure a resilient public payment option alongside cash. This shift is set to affect users and payment firms alike, reshaping Europe’s payments landscape to strengthen its strategic autonomy.
Design, Testing, and Open Questions
Physical cash will remain in circulation, complemented by a digital euro accessible via apps from the ECB and private payment providers. The ECB frames this as essential for keeping European payments under European control. To foster innovation, a test network linking around 70 companies is exploring advanced features, such as conditional payments where money moves only upon the delivery of goods.
A key consideration is banking stability, as a large-scale shift of household deposits into digital euro wallets could impact bank funding. To limit this, a holding cap per person, potentially around 3,000 euros, is under discussion. Privacy is another priority, with designs aiming to prevent the ECB or intermediaries from tracking payment details. The ECB also highlights the geopolitical dimension, noting the need for a European equivalent to other state-backed digital currencies. All features must pass rigorous security and compatibility checks before launch.
The next significant marker on the calendar is October 2025, when the preparation phase concludes. From there, the path forward hinges on lawmakers and the building of new systems. In practical terms, the digital euro aims to safeguard European sovereignty in payments while carefully balancing innovation with stability and privacy on its journey toward a potential 2029 launch.
