MNI BRIEF: ECB Ready For Possible Digital Euro Launch In 2029

The European Central Bank is building technical capacity for a possible launch of its digital euro in 2029, based on the assumption that legislation will be ready in 2026, the ECB said in a statement on Thursday.

Following the completion of a two-year preparation phase, the ECB’s Governing Council decided on Wednesday to start developing the digital euro’s technical foundations and testing core functions with market participants, including a pilot and initial transactions beginning in mid-2027, it said. (See MNI INTERVIEW: Digital Euro Risks Failure-Ex Bank Of Spain Gov)

The ECB will now focus on technical readiness, market engagement, and legislative coordination, while “keeping flexibility to align progress with political developments”. Costs are estimated at around EUR1.3 billion until the first potential issuance, with annual operating costs of about EUR320 million.