The European Central Bank is entering a new phase of its journey towards the digital euro after concluding the preliminary work that started again in November 2023. The plan is clear. If the necessary laws are passed in 2026, a pilot phase will begin in 2027, and full deployment of the digital euro is expected by 2029 in all eurozone countries.
Pressure builds behind the scenes
There is a growing urgency on the part of European leaders to speed things up. They want the ECB to act faster as digital payment habits evolve and private companies continue to dominate the space.
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They expect a full deployment of the digital euro by 2029 pic.twitter.com/gMNPnx8qrJ
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There is also a larger concern driving this push: maintaining the euro’s relevance in everyday payments as fewer people use physical cash. The ECB sees the digital euro as a way to stay in the game and offer a public alternative that maintains control of the currency within the system.
What is really happening right now?
Now that the next phase is underway, the ECB is focusing on three main areas. First, they want to make sure the technology works. Second, they are working closely with payment providers and other market players.
And third, they are supporting lawmakers as they prepare to vote on the legal framework. A draft regulation has already been drawn up and the ECB has chosen its infrastructure partners. Everything is lining up behind the scenes to keep the timeline on track.
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The numbers behind the launch
The digital euro is not a small budget project. Development costs are estimated at 1.3 billion euros until the first official launch. Once operational, annual operating costs are expected to amount to around €320 million starting in 2029. These figures show how big the ECB is thinking, essentially building a digital version of cash that is supported by the public sector.
How it will affect daily spending
Once launched, the digital euro will not replace cash, but will remain alongside it. The idea is to offer another form of payment that is more resilient, inclusive and widely accepted throughout Europe.
Whether someone prefers coins, cards, or phone wallets, the digital euro would add another tool to the mix. Its goal is not to eliminate existing systems, but to give people a safer, more stable option that does not depend on private companies.
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What the timeline looks like from here
If the European Parliament and Council approve the legislation by 2026, testing can begin the following year. The ECB will continue to work on the technology and coordinate with the market during this time. Lawmakers must finalize the legal framework before officials can issue the digital cryptocurrency. Until then, the pieces will be preserved. moving silently in the background.
A sign of the times
This whole process is a sign that central banks are no longer watching from the outside. The ECB’s move shows a willingness to rethink money itself and how people use it every day. With the digital euro on track for 2029, Europe prepares for the future where public and digital currencies work side by side.
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Key takeaways
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The European Central Bank plans to launch the digital euro by 2029 if laws are passed in 2026 and testing begins in 2027.
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European leaders are pressing the ECB to accelerate development to keep the euro relevant as digital payments replace cash.
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The ECB is focusing on technological readiness, collaboration with payment providers and legislative support during the next phase.
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Developing the digital euro will cost around €1.3 billion in development, with annual operating costs of around €320 million once up and running.
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The digital euro will complement, not replace, cash by offering a public and secure digital payment option across the eurozone.
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