Digital euro targets initial issuance in 2029, subject to EU legislation
Key Facts
The European Central Bank aims to be ready for a possible first issuance of the digital euro during 2029, if the governing legislation is adopted in 2026, according to the timeline published by the bank. That date does not mean a decision to issue the currency has been made; the bank said a decision would come only after the regulation is adopted. The project is part of efforts to provide a digital means of payment that works across the euro area and complements cash and private-sector solutions. Executive Board member Piero Cipollone said that, without a comprehensive European solution, the region could remain reliant on international card networks and global technology companies. In a speech in Frankfurt on 6 October 2026, he said, "Excessive reliance on infrastructure, technology or solutions controlled by others weakens our resilience and monetary sovereignty."
The infrastructure gap is reflected in the reliance of two-thirds of euro-area card payments on international networks, according to Cipollone. In addition, 13 of the region’s 21 countries do not have a domestic card network, leaving a large share of payments linked to cross-border operators. The official said, "Two-thirds of card payments in the euro area rely on international networks," adding that 13 countries do not have a domestic network. In an interview published by the bank on 8 October, he explained that the digital euro would complement cash, not replace it, and that its use would not impose a cost on individuals. According to his account, it would enable payments online and offline, between individuals and in e-commerce and shops, across the euro area.
The plan includes a pilot beginning in the second half of 2027 and lasting 12 months, with 36 payment service providers licensed in the euro area taking part. The test is a preparatory phase ahead of the target date for a possible first issuance in 2029, while issuance itself remains conditional on legislation and a subsequent decision by the bank. The ECB said preparatory work would remain flexible and aligned with the legislative process, and that it would not decide on issuance before the regulation is adopted. The Council of the European Union adopted its position in December 2025, followed by the European Parliament in July 2026. According to Cipollone in his October speech, trilogue negotiations on the legislation began after those two steps.
In the interview published on 8 October, Cipollone also linked the project to the cost of accepting digital payments for small merchants. He said that cost "could be cut in half" with the digital euro, while support for the single currency exceeded 80% in the latest Eurobarometer survey, according to the interview. He noted that Italy has 570 thousand merchants employing nearly 2 million people. He said high card-acceptance fees drain their margins, which are already narrow. Reducing those fees, in the case he made, represents a practical aspect of the impact of a public means of payment, alongside the issue of monetary sovereignty.
The digital euro project is progressing alongside two other efforts to develop digital financial infrastructure, but each has a different purpose. The Eurosystem launched the Pontes project on 21 September 2026 to settle wholesale transactions in tokenised assets using central bank money. Additional features and longer operating hours are expected to be introduced gradually, with completion targeted for 2028. Appia, meanwhile, is developing an integrated ecosystem for financial services based on distributed ledger technology, with participation from the Eurosystem, Danmarks Nationalbank and public and private entities. The project aims to produce a blueprint by 2028 as part of work that includes trials and analysis.
These initiatives span everyday retail payments, the settlement of tokenised assets and the development of distributed-ledger-based financial services, with each project having a different scope. The digital euro is intended for everyday payment use across the region, while Pontes focuses on settling wholesale transactions in tokenised assets using central bank money. Appia aims to build a broader framework for financial services using that technology, with its blueprint due in 2028. Cipollone said in January 2026 that rising geopolitical tensions strengthened the case for European payment systems under European control. He described reliance on non-European payment infrastructure as a potential source of vulnerability, saying: "We need a system fully under our control; that is what we are working on with the digital euro."