Business · Companies · 14 hrs ago
ECB pushes ahead with digital euro as approval and launch remain uncertain
European Central Bank President Christine Lagarde says the ECB is preparing a digital version of cash for everyday payments.
The digital euro is intended to work alongside banknotes and coins, not replace them, and would be issued by the ECB and national central banks.
It is not approved for public use yet: European lawmakers must first agree on legislation governing how it would be distributed and used.
The ECB says that law needs to be approved by the end of 2026 to keep its plans on track.
If it is, the bank hopes to start a 12-month payment test in the second half of 2027 with banks, payment firms and selected users and retailers.
The test would check whether the system is reliable and easy to use, and would not be a public launch.
A first issue is possible in 2029, but depends on the law, the test results and a later ECB decision.
The ECB says the digital euro could reduce reliance on foreign payment companies and keep public money available as payments become more digital.
The European Central Bank is preparing a digital euro, but its approval and launch remain conditional on European legislation and later ECB decisions.
ECB President Christine Lagarde says the digital euro would complement cash and support everyday payments.
European lawmakers are negotiating the rules, which the ECB says need approval by the end of 2026 to keep its schedule.
If legislation is approved in time, the ECB plans a 12-month test in the second half of 2027.
A possible first issuance is planned for 2029, but no final decision has been made.
- Who
- The European Central Bank, led by President Christine Lagarde, is preparing the digital euro. European lawmakers must first agree on legislation.
- What
- The ECB is advancing plans for a digital form of cash for payments. Its use has not yet been approved.
- When
- The ECB says the legislation is needed by the end of 2026. A test is planned for the second half of 2027, with a possible first issuance in 2029.
- Where
- The plans concern the euro area and its payments system.
- Why
- The ECB says the digital euro would keep public money available in a digital economy, support retail payment innovation and reduce reliance on foreign payment companies.
This story does not have two clearly opposing sides.
The Council of the European Union set its position on the digital euro legislation.
The European Parliament set its position, and the institutions began negotiating the final text with the European Commission.
The ECB says legislation must be approved by this point to keep its plans on schedule.
If legislation is approved in time, the ECB plans to begin a 12-month test involving banks, payment providers, selected merchants and central bank staff.
The ECB is aiming for a possible first issuance, subject to legislation, test results and a later decision by its governing body.
- Legislation deadline
- End of 2026
- Planned test
- 12 months, starting in the second half of 2027
- Test participants
- 36 banks and other payment service providers
- Possible first issuance
- 2029
- Pontes full rollout
- 2028
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What people are saying
The digital euro will further stimulate innovation and competition in retail payments.
The global economy has proven surprisingly resilient to uncertainty, says President @Lagarde.