European Central Bank outlines digital euro rollout by 2029

The European Parliament's Economic and Monetary Affairs Committee approved a position on the “Single Currency Package,” setting a legislative timetable that could see a digital euro regulatory framework finalized by the end of 2024, a pilot phase launching in mid‑2027 and the first issuance as early as 2029. The plan would create a central‑bank digital currency that citizens and businesses could hold and use directly, complementing cash rather than replacing bank deposits.

ECB Executive Board member Piero Cipollone presented a three‑pillar roadmap: a retail digital euro with holding caps to protect financial stability; wholesale settlement of tokenised assets on distributed‑ledger technology beginning September 2026; and faster cross‑border payments through interlinked fast‑payment systems. The ECB has signed standardisation agreements with the European Card Payment Cooperation, nexo and the Berlin Group to ensure merchant acceptance.

The initiative aims to reduce reliance on private payment networks such as Visa, Mastercard and US‑based stablecoins, while addressing privacy concerns by limiting personal holding limits and preserving the optional use of cash. If approved, the digital euro would become legal tender across the eurozone and could reshape the market for euro‑denominated stablecoins.