Global: ECB Targets 2027 Pilot for Digital Euro Ahead of 2029 Rollout

The European Central Bank (ECB) has announced plans to begin a digital euro pilot in 2027, setting the stage for a potential full rollout of the central bank digital currency (CBDC) by 2029.

In its latest progress report, the ECB confirmed that it has completed the two-year preparation phase and is now transitioning toward technical readiness for the digital currency’s first issuance.

The move follows renewed calls from European policymakers to accelerate the project amid growing geopolitical and economic pressures — including concerns over U.S. dominance in payments and Europe’s dependence on Visa and Mastercard.

“A digital euro will preserve Europeans’ freedom of choice and privacy while protecting Europe’s monetary sovereignty and economic security,” the ECB said in a statement.

The project’s next step hinges on legislative approval. The ECB expects the European Parliament and Council to adopt the Digital Euro Regulation in 2026, clearing the way for pilot testing and limited transactions by mid-2027.

If successful, the Eurosystem — which includes the ECB and the national central banks of the eurozone — could be ready for a wider issuance by 2029.

ECB President Christine Lagarde described the initiative as part of Europe’s broader effort to modernize its financial system.

“The euro, our shared money, is a trusted symbol of European unity,” Lagarde said. “We are making it future-ready by redesigning banknotes and preparing for the introduction of digital cash.”

Ahead of the launch, the ECB and Eurosystem will focus on three key areas:

1. Technical readiness — ensuring the digital euro can operate securely at scale.

2. Market engagement — involving banks, payment providers, and merchants in pilot testing.

3. Legislative process support — working with EU lawmakers to finalize the regulatory framework.

The ECB estimates that total development costs will reach €1.3 billion up to the initial issuance, followed by annual operating expenses of around €320 million.

If approved and launched on schedule, the digital euro would mark one of the most significant transformations in Europe’s monetary history — blending the trust of traditional cash with the efficiency of digital payments while reinforcing the continent’s financial autonomy.