The European Central Bank (ECB) has revealed that it could launch a pilot phase for the long-discussed digital euro in mid-2027, provided EU lawmakers and national governments finalize a legal framework next year. According to Bloomberg, the ECB’s Governing Council announced on Thursday that it will proceed to the next stage of the project after completing its current two-year preparation phase at the end of this month. If all goes as planned, full issuance of the digital euro could begin in 2029.
The central bank said that assuming European co-legislators adopt necessary regulations in 2026, “a pilot exercise and initial transactions could take place as of mid-2027.” Executive Board member Piero Cipollone described the initiative as “not just a technical project but a collective effort to future-proof Europe’s monetary system,” adding that a digital euro would help “protect Europe’s monetary sovereignty and economic security.”
The ECB has long advocated for a digital counterpart to cash, aiming to reduce Europe’s dependence on global payment giants such as Visa, Mastercard and PayPal. The growing popularity of dollar-backed stablecoins, notably endorsed by former U.S. President Donald Trump, has intensified Europe’s push for its own digital currency alternative. However, progress remains stalled as EU governments and the European Parliament have yet to agree on the legal underpinnings of the system. Some lawmakers continue to favor private-sector solutions to address fragmentation in the region’s payments landscape, while banks—especially in Germany—have raised concerns about potential deposit outflows.
In the next stage, the ECB and the 20 national central banks in the euro area will focus on developing the digital euro’s technical foundations, engaging with market participants, and supporting the legislative process. The central bank stressed that preparations will remain flexible to align with political developments, ensuring the Eurosystem can move forward swiftly once approval is granted.
The ECB estimates total development costs for the digital euro at around €1.3 billion ($1.5 billion) through to its first issuance, with annual operating expenses projected at roughly €320 million from 2029 onward. These costs would be borne by the Eurosystem, similar to how it finances the production and circulation of physical banknotes, which the ECB reiterated are “a public good.”
