The European Central Bank is still targeting 2029 for the issuance of a digital euro, with a 12-month pilot set to begin in the second half of 2027, according to Piero Cipollone, a member of the ECB's Executive Board.
Cipollone outlined the timeline in a keynote speech at the eighth International Conference of Regional Card Schemes and Retail Financial Market Infrastructures. He said the digital euro is intended to address Europe's fragmented payment system, noting that 13 countries rely on non-European companies for in-store card payments.
Legislation Still Under Negotiation
According to Cipollone, the legislative process for the digital euro is advancing, with negotiations underway between the European Parliament, the Council of the European Union, and the European Commission to reach preliminary agreements. Those negotiations are expected to conclude this year.
He estimated that the digital euro could be issued in 2029 if the negotiations conclude successfully by year-end.
"The digital euro is not merely a fix for existing shortcomings in the euro area payments landscape. It is a solution for the future. It will provide a platform to innovate and enhance the quality and breadth of payment services," Cipollone said.
Pilot to Test Technology and Coordination
Before any issuance, a pilot would start in the second half of 2027 and run uninterrupted for 12 months. Cipollone said the pilot would test technology and also harmonize interactions between service providers, merchants, central banks, infrastructure operators, and users. Thirty-six service providers have been selected to take part in the preliminary phase.
ECB President Christine Lagarde had previously referred to the pilot, hinting at a 2028-2029 bloc-wide launch while noting that it would depend on regulation being established before year-end.
Stablecoin Concerns Cited
Lagarde has promoted the digital euro as an alternative to the rise of stablecoins, warning about the risks their growing adoption poses to the region's monetary sovereignty. According to that argument, increased stablecoin usage could limit central banks' ability to apply effective monetary policy because such tools remain outside the constraints of the traditional fiat system.
