ECB warns digital euro may not launch in 2029 as EU talks continue

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The European Central Bank has warned that delays in approving European Union legislation could push the digital euro’s potential launch beyond 2029, even as preparations continue for a 12-month pilot scheduled to begin next year.

Summary

ECB official Piero Cipollone warned that legislative delays could postpone the digital euro’s potential 2029 launch.
European lawmakers are negotiating the digital euro regulation, with the ECB seeking approval before year-end.
Parliament backed its negotiating position in July, but the EU institutions have not reached an agreement.
The ECB plans a 12-month pilot beginning in 2027 with 36 payment providers and selected merchants.
European banks are preparing euro stablecoins under MiCA while the digital euro awaits legislative approval.

In a November 10 statement to the European Parliament’s Committee on Economic and Monetary Affairs, ECB Executive Board member Piero Cipollone urged lawmakers to complete negotiations on the Single Currency Package before the end of 2026.

“A delay in adoption could instead postpone the introduction of the digital euro,” Cipollone warned.

The ECB has been preparing for a possible first issuance in 2029, provided European lawmakers approve the necessary regulation this year. Its Governing Council will determine whether and when to issue the digital currency once the legislation is in place.

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ECB says digital euro timeline depends on EU legislation

Cipollone told lawmakers that completing negotiations this year would provide the legal framework needed to finish preparations and establish a possible issuance date.

The Single Currency Package contains legislation covering the digital euro and the legal tender status of euro banknotes and coins.

Although the ECB can continue developing the technology, it cannot issue a digital euro without the necessary legal authorization.

Cipollone warned that further delays could leave European payment systems dependent on providers based outside the region, while making it harder for domestic financial technology companies to compete.

As crypto.news previously reported, Cipollone discussed the 2029 target in an October 24 interview, emphasizing Europe’s reliance on foreign payment networks.

He said two-thirds of online card payments in Italy use non-European card schemes, while smaller merchants can face processing fees up to four times higher than those charged to larger businesses.

The digital euro is intended to provide another payment option that works across the euro area, including transactions made without an internet connection.

European Parliament negotiations continue over digital euro rules

The European Parliament approved its negotiating position on July 9, with 416 lawmakers voting in favor, 169 against and 22 abstaining.

Its Economic and Monetary Affairs Committee had previously approved the proposal on June 23 by 43 votes to 14, with one abstention.

Fernando Navarrete Rojas, a Spanish member of the European People’s Party, leads Parliament’s negotiating team.

The Council of the European Union adopted its position in December 2025, allowing negotiations between Parliament, the Council and the European Commission to proceed.

Records show that negotiators held another round of discussions on November 5, but a final agreement has not been announced.

Parliament’s position includes privacy safeguards, limits on individual digital euro holdings and requirements for businesses to accept the new payment method, subject to certain exemptions.

Lawmakers want basic services, including account opening and payments, to remain free for consumers. The proposal would introduce restrictions on fees charged to merchants and payment providers.

The legislation would require banks and other payment companies to prepare their systems before digital euros become available to the public.

Digital euro pilot remains scheduled for 2027

Despite the legislative uncertainty, the ECB is continuing preparations for its digital euro pilot, scheduled to begin in the second half of 2027.

The exercise will run for 12 months and use a beta version of the digital currency without legal tender status.

Participants will include ECB employees, staff from 19 national central banks, selected merchants and 36 payment service providers.

The ECB selected those providers in July after receiving more than 50 applications from banks and nonbank financial companies.

Participants will test everyday transactions, including payments at cafeterias, person-to-person transfers and purchases through online stores.

In September, the central bank opened another application process for online and mobile merchants. It expects to announce the selected businesses in early 2027.

The ECB plans to examine the technology’s reliability, payment processing and customer experience before deciding on the next stage.

Separately, the central bank will conduct another round of innovation testing between January and June 2027, covering conditional payments and possible artificial intelligence applications.

European banks advance euro stablecoin plans under MiCA

While the digital euro awaits legislation, European financial institutions are developing privately issued euro stablecoins under the EU’s Markets in Crypto-Assets Regulation.

In October, Qivalis, a consortium backed by 37 banks across 15 countries, received regulatory authorization from the Dutch central bank to operate as an electronic money institution.

The company plans to issue a euro-denominated stablecoin, subject to additional MiCA requirements.

Its proposed token would be issued by a private institution, unlike the digital euro, which would represent central bank money.

Qivalis intends to distribute the stablecoin through banks, cryptocurrency exchanges and payment service providers, although the token has not yet entered circulation.

Meanwhile, the ECB has continued developing infrastructure for tokenized financial transactions. Cipollone said its Pontes settlement platform, launched in September, began with 18 participating financial institutions and market infrastructure operators.

On November 2, Pontes settled the European Stability Mechanism’s first digitally native benchmark bond, valued at €1 billion, using central bank money.

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