The European Central Bank (ECB) announced the completion of the preparatory phase and the launch of a new stage of the digital euro (CBDC) project, aimed at achieving full technical readiness for rollout in 2029.
According to the ECB’s report, the project is now moving into its next phase, which will focus on ensuring the technical preparedness of Europe’s financial system for the introduction of the CBDC. Legislation governing the use of the digital euro is expected to be adopted in 2026, with pilot testing set to begin in 2027.
During this new stage, the Eurosystem will concentrate on three key areas:
- Technical readiness. Building the technological foundation for the digital euro, including system setup and pilot trials.
- Market engagement. Collaborating with payment service providers, merchants, and users to refine rules, conduct studies, and perform testing.
- Legislative process support. Providing technical advice to European lawmakers.
The ECB estimates that total development and preparation costs up to the first issuance will amount to around €1.3 billion, while annual operating expenses after launch will be approximately €320 million. These costs will be borne by the Eurosystem, similar to the issuance of physical euro cash, which, like the digital euro, is considered a public good.
According to ECB President Christine Lagarde, “the euro is a trusted sign of European unity.” She emphasized that the digital euro is essential to maintaining public trust and ensuring that cash remains usable in the future. It’ll complement physical cash while preserving its advantages — simplicity, privacy, reliability, and accessibility across all eurozone countries.
ECB Executive Board Member Piero Cipollone added that the digital euro is intended to strengthen the resilience of Europe’s payment system, reduce merchant costs, and foster innovation and competition among private companies.
A final decision on the issuance of the digital euro will only be made once the legislative framework is completed. If all goes according to plan, Europeans could start using the new form of money by 2029.
The digital euro project was launched in 2020 and entered an active preparation phase in 2023. During the previous phase, the ECB developed a draft regulation, selected several technology providers, and studied how the digital euro would interact with the existing payment infrastructure. The ECB also promotes CBDCs as a tool to enhance the EU’s strategic autonomy in payment technologies.
