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The European Central Bank (ECB) is pushing forward with preparations for its long-anticipated digital euro launch, aiming for 2029 if lawmakers can finalize a legal framework in time. According to a report by Bloomberg on Wednesday, officials will continue technical groundwork once the current preparation phase ends this month.
Work on the digital euro launch began in 2020 as part of Europe’s strategy to modernize its financial system and secure a sovereign payment alternative to private digital currencies. The ECB entered its “preparation phase” in late 2023, with teams now focusing on infrastructure, design, and security testing ahead of a potential rollout.
The latest discussions are taking place in Italy this week, sources told Bloomberg, as policymakers seek consensus across EU institutions. However, insiders caution that progress depends heavily on whether European lawmakers can pass the necessary legislation within the next four years.
“Our objective is to ensure that every European has access to free, universally accepted digital means of payment,” Piero Cipolloni, Executive Board Member, European Central Bank.
Despite years of preparation, the digital euro launch faces resistance from lawmakers, banks, and citizens across the EU. Critics have raised concerns over surveillance risks, privacy violations, and potential disruptions to commercial banking.
The proposal for a central bank digital currency (CBDC) has been before the European Parliament since 2023, but debates have repeatedly stalled amid the 2024 election cycle and ideological divisions over monetary sovereignty.
Some EU member states argue that a CBDC could strengthen financial stability and competitiveness, while others warn it may grant central banks excessive control over citizens’ transactions.
Cipolloni recently reaffirmed that the mid-2029 timeline remains realistic but stressed the need for legislative alignment by May 2026. Without it, the ECB may be forced to extend its preparatory work indefinitely.
“The digital euro launch is not just about innovation as it’s about ensuring resilience in times of crisis, from cyberattacks to geopolitical disruptions,” — Piero Cipolloni, ECB Board Member, in a public statement.
For a full overview of the proposal, readers can access the ECB’s official digital euro project page and the European Commission’s legislative proposal.
As Europe refines its digital euro launch roadmap, it joins a growing list of countries experimenting with central bank digital currencies. According to the Atlantic Council’s CBDC tracker, only three jurisdictions which are Nigeria, The Bahamas, and Jamaica have officially launched a CBDC. Another 49 countries remain in pilot stages, reflecting cautious global momentum toward digital monetary systems.
The Human Rights Foundation (HRF), which launched its CBDC Tracker in November 2023, highlights both the potential and pitfalls of state-backed digital currencies. While they can enhance payment efficiency and financial inclusion, HRF warns of privacy trade-offs and new opportunities for authoritarian misuse.
These debates resonate in Europe, where data protection remains a politically sensitive issue. The ECB has pledged that user privacy will be “a fundamental design principle” of the digital euro launch, ensuring offline transaction options and minimal data collection.
The digital euro launch represents a defining moment for Europe’s financial future. Supporters believe it could cement the EU’s monetary independence and provide a secure, efficient alternative to private payment systems like PayPal or stablecoins such as USDT and USDC.
Yet, the success of the project depends on harmonized regulation and public trust. The ECB will continue technical testing and stakeholder consultations through 2026, aligning its strategy with feedback from consumers, banks, and fintech firms.
The European Commission has emphasized that no final decision to issue the digital euro will be made until the Parliament and Council approve the legislative framework. That framework must define how privacy, interoperability, and anti-money laundering rules will operate across the bloc.
For further context, the ECB’s Digital Euro Report (2023) outlines the main policy objectives and technical considerations behind the digital euro launch.
If lawmakers meet the 2026 deadline, Europe could see its first continent-wide CBDC in circulation by 2029 marking the EU’s entry into the next era of digital finance.
