European Central Bank plans euro banknote redesign and digital currency pilot

The European Central Bank (ECB) is preparing for a significant transformation of the euro, involving both the redesign of physical banknotes and the development of a digital euro.

Regarding physical currency, the ECB is planning a major redesign of euro banknotes to include reinforced security features and a new visual identity. Two primary themes have been shortlisted for public consultation: one centered on European culture, featuring figures from art, science, and literature, and another focused on the continent’s natural environment, such as rivers and birds. The winning concept is expected to be announced in December 2026, with circulation potentially beginning as early as 2029. The ECB emphasized that cash is intended to remain a permanent part of the European payments system.

Simultaneously, the ECB is advancing the digital euro project. A pilot program is scheduled to begin in the second half of 2027, involving 36 payment service providers from the eurozone. During this one-year beta test, employees of the ECB and 19 national central banks will test the digital currency for everyday transactions in retail, gastronomy, and online commerce. The digital euro is intended to complement rather than replace physical cash, serving as a tool for European sovereignty and future-proofing the currency.