TLDR
- The European Central Bank moves the digital euro project to its next development phase.
- The ECB targets 2029 for the first potential issuance of its CBDC.
- Legislation must pass during 2026 to enable a pilot exercise in 2027.
- Officials completed the preparation phase that started in late 2023.
- ECB Board member Piero Cipollone predicts parliamentary consensus by May 2026.
The European Central Bank advances its digital euro project to the next phase. The central bank plans to issue a potential CBDC by 2029, pending legislative approval. Officials completed the preparation phase that began in late 2023.
The ECB announced the progress on Thursday after completing the initial groundwork. The move depends on lawmakers establishing a proper legal framework. A pilot exercise could begin in 2027 if legislation passes during 2026.
The Eurosystem aims to be ready for the first CBDC release in 2029. The timeline reflects years of planning and development. Officials started exploring the digital euro concept in 2020.
Legislative Challenges Face Digital Euro Development
The European Parliament has reviewed CBDC legislation since 2023. Political concerns and 2024 elections caused delays in the process. Lawmakers continue working toward reaching a consensus on the proposal.
ECB Board member Piero Cipollone predicted parliamentary agreement by May 2026. He identified mid-2029 as a realistic launch date for the CBDC. The official emphasized the importance of legislative support for the project.
Banks and member states expressed skepticism about the digital euro. End-users raised concerns about privacy and potential risks. These objections created obstacles for the development of CBDCs.
Cipollone stated the CBDC would provide free digital payment access for all Europeans. The system would remain operational during major disruptions, such as wars. Cyberattacks would not compromise the digital payment infrastructure.
Global CBDC Adoption Remains Limited
Only three countries have launched a CBDC, according to the Atlantic Council. The American think tank tracks digital currency developments worldwide. Nigeria, the Bahamas, and Jamaica operate active digital tokens.
Forty-nine countries currently test CBDCs in pilot phases. The global adoption rate remains low despite widespread exploration. Development timelines vary across different jurisdictions.
The Human Rights Foundation released a CBDC tracker in November 2023. The organization identified improved payment efficiency as a key benefit. Financial inclusion could expand through the use of central bank digital currencies.
Privacy concerns represent a significant drawback of CBDC systems. Government corruption opportunities may increase with the implementation of digital currency. These risks require careful consideration during development.
The ECB continues to prepare the technical infrastructure for the digital euro. The preparation phase provided essential insights for future development. Officials remain committed to the 2029 target date.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
