European Central Bank pursues digital euro and Pontes wholesale project

The European Central Bank (ECB) is developing a dual strategy to expand central bank money through the proposed digital euro for retail use and the Pontes project for wholesale tokenized finance.

The digital euro is intended as a means of payment for person-to-person transactions, e-commerce, and in-store purchases. While not yet approved, the ECB aims for a potential first issuance in 2029, provided EU legislation is finalized by late 2026. The digital euro would not pay interest, and individual holdings would be subject to limits. A pilot program is scheduled for the second half of 2027.

Complementing the retail focus, the Eurosystem launched Pontes on September 21 to connect distributed ledger technology platforms with Eurosystem services. Pontes is designed to serve banks, market infrastructures, and investors, with full implementation targeted for mid-2028. It aims to provide 24/7 service, enhanced resilience, and multi-currency capabilities for wholesale applications.