European Central Bank targets 2029 for digital euro launch

The European Central Bank (ECB) is advancing plans for a digital euro, with a potential first issuance targeted for 2029. To prepare, the ECB expects to launch a 12-month pilot program during the second half of 2027. This pilot will involve 19 national central banks, including Finland, and 36 selected banks and payment providers.

A key feature being tested is a new identifier called the Digital Euro Access Number (DEAN). Unlike the IBAN, the DEAN will not reveal the user's country and could potentially be linked to a phone number to facilitate easier transfers. The pilot will test various use cases, including retail payments in physical and online stores, as well as offline transactions.

The project aims to complement cash rather than replace it, while reducing Europe's reliance on non-European payment providers like Visa and Mastercard. The ECB has clarified that while the digital euro will not be “programmable money” in a restrictive sense, it will support “conditional payments,” such as funds being released automatically once specific commercial milestones are met.