Christine Lagarde, the President of the European Central Bank (ECB), has publicly set a target for a first issuance of the digital euro in 2029, provided the necessary legislation is adopted by the EU in 2026. The ECB also plans a pilot phase starting in mid-2027.
The project has now advanced from the preparation phase (launched November 2023) into a technical readiness phase, focusing on infrastructure, market engagement, and legislative support.
Related: European Central Bank (ECB) Sets Sights on Ethereum and Solana for Digital Euro Rollout
EU Claims Payment Sovereignty
The primary objectives of this endeavor are to modernize the euro, strengthen the EU’s monetary sovereignty, and provide a public digital payment.
The EU is making it clear that it wants to keep control of its payment systems, instead of handing them over to foreign entities, like the US financial networks or overseas stablecoin issuers.
Global CBDC Pace Sets Benchmarks
Globally, many central banks are exploring CBDCs (central bank digital currencies), and the digital euro will be one of the largest retail-CBDC efforts if it reaches issuance.
The EU’s digital euro is just one of many planned CBDCs, considering more and more countries are looking to implement one. According to the Atlantic Council, over 130 countries are now exploring CBDCs, which represent more than 98% of global GDP.
China is the furthest ahead, with its digital yuan already being tested in more than 30 cities and used inside popular payment apps like WeChat. India has also sped up its own digital rupee tests, now involving regular banks and consumer payments.
The United States is moving more slowly, as officials debate concerns about privacy and how it would affect the traditional banking system, though research and pilot testing continue.
Additionally, emerging markets are some of the quickest to embrace national digital currencies. Countries like Brazil, Nigeria, and the Bahamas see CBDCs as a way to improve financial access and reduce reliance on cash.
In the end, CBDCs often position themselves as not cryptocurrencies but central bank-issued digital cash. In doing so, they may reduce some use cases for private stablecoins, as well as spark a wave of new technology for digital wallets, payment networks, and other token-based financial products.
Related: ECB Cipollone’s Vision: Digital Euro That Preserves Choice, Security and European Identity
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