The European Central Bank (ECB) moves into the technical development phase for a digital euro with a budget of 1.3 billion euros, aiming for a rollout in 2029.
The European Central Bank ( ECB ) has officially announced an important step in its central bank digital currency (CBDC) project, marking the end of a preparatory phase that has lasted since 2023. This move demonstrates Europe's determination to modernize its monetary system and maintain digital sovereignty in the context of increasingly fierce global competition.
According to the roadmap published by the ECB, the legal framework governing the digital euro is expected to be completed by 2026, creating a legal basis for pilot tests to be implemented from 2027. If all goes smoothly, people in the common currency area could start using this new form of payment in 2029.
ECB President Christine Lagarde stressed the strategic importance of the project, saying that the digital euro is not only a modern payment instrument but also a symbol of public confidence in the common European currency. She affirmed that this digital currency will go hand in hand with physical cash, inheriting core features such as simplicity, privacy and wide accessibility.
Three pillars of digital infrastructure development
The new phase focuses on three key areas. First, building technical readiness through the establishment of a technological platform and conducting pilot tests. Second, the Eurosystem will increase engagement with stakeholders including payment service providers, merchants and end-users to finalize the operating rules. The third area is supporting European legislators in developing an appropriate legal framework.
The ECB expects total development costs up to the initial issuance stage to be around 1.3 billion euros, while annual operating costs thereafter are estimated at 320 million euros. These costs will be covered by the Eurosystem, similar to the printing and issuance of traditional euro banknotes.
ECB Executive Board member Piero Cipollone pointed out that the digital euro is designed to enhance the resilience of the payments system, reduce transaction costs for businesses, and promote innovation and healthy competition in the private sector. The project is also considered by the ECB as an important element in strengthening the European Union's strategic autonomy in the field of financial technology.
