The European Central Bank says it could launch a digital euro pilot in 2027 ahead of a 2029 launch for the CBDC.
In its latest update on the multi-year project, the ECB says it has completed the preparation phase that began two years ago and is now moving on to ensure technical readiness for the first issuance.
The decision to push ahead comes after European leaders called for an acceleration in the face of geopolitical challenges, including an increasingly hostile United States under Donald Trump and concerns about Europe's reliance on Mastercard and Visa.
"A digital euro will preserve Europeans’ freedom of choice and privacy and protect Europe’s monetary sovereignty and economic security," says the ECB.
The bank is now waiting to see if European co-legislators - as expected - adopt the regulation on the establishment of the digital euro in the course of 2026, which would pave the way for a pilot exercise and initial transactions in mid-2027.
Then, the whole Eurosystem should be ready for a potential first issuance of the digital euro in 2029.
“The euro, our shared money, is a trusted sign of European unity,” says ECB President Christine Lagarde. “We are working to make its most tangible form - euro cash - fit for the future, redesigning and modernising our banknotes and preparing for the issuance of digital cash.”
Ahead of any launch, the Eurosystem will now focus on three areas: technical readiness, market engagement, and legislative process support.
The ECB estimates that the total development costs, comprising both externally and internally developed components, are around €1.3 billion until the first issuance, with subsequent annual operating costs of about €320 million per year.