Today the Governing Council of the European Central Bank (ECB) announced a decision to move to the next phase of the digital euro. It expects to launch pilots in 2027 and go live in 2029. The ECB is not officially calling this the launch phase because the central bank digital currency still needs legislative approval, which is a key part of the work to be done. Another is to ensure technical readiness. The Governing Council will only make a launch decision and set a specific launch date once the law has been passed.
Before the June 2024 European elections, the passage of legislation appeared a near certainty. But after that it was slow-going, with the Rapporteur, the MEP who coordinates the drafting, stepping aside because of misgivings. More recently, President Trump’s promotion of dollar-based stablecoins has helped the ECB drum up support from EU member states. This is despite the EU’s MiCA regulations largely protecting Europe from stablecoin-based sovereignty threats. Nonetheless, the EU legislative process is complex, requiring approval from the Commission, Parliament and the European Council, which represents the nation states.
Despite these hurdles, the ECB remains optimistic about the project’s benefits. “This is not just a technical project but a collective effort to future-proof Europe’s monetary system,” said ECB Executive Board member Piero Cipollone, who chairs the High-Level Task Force on a digital euro. “A digital euro will ensure that people enjoy the benefits of cash also in the digital era. In doing so, it will enhance the resilience of Europe’s payment landscape, lower costs for merchants, and create a platform for private companies to innovate, scale up and compete.”
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