European Central Bank moves ahead with digital euro rollout

The European Parliament has given a qualified majority vote supporting the creation of a digital euro, a central‑bank‑issued electronic payment instrument intended to lessen the euro area’s reliance on non‑European card networks. The European Central Bank (ECB) plans to start a 12‑month pilot in the second half of next year, with full commercial availability targeted for 2029.

The pilot will involve banks, fintech firms and merchants testing online and offline transactions, including possible use of special cards or devices for payments without an internet connection. Regulators aim to adopt the necessary rulebook by 2026, after which a mid‑2027 pilot could commence. The digital euro will complement cash rather than replace it, and limits on holdings are expected to curb large‑scale shifts from commercial bank deposits. The ECB estimates implementation costs of €4‑6 billion over four years, while European banks have expressed concerns about system‑upgrade expenses and data‑security safeguards.