Digital Euro on Track for 2029, Pending Legal Framework

The European Central Bank (ECB) is preparing to launch the digital euro by 2029, provided that the necessary legal framework is approved. Supported by more than 200 German banks, the project aims to modernize Europe’s financial system and provide a central bank–backed alternative to private cryptocurrencies.

According to the ECB, the project has entered a new stage following the completion of its initial preparation phase, which began in 2023. If EU lawmakers approve the legislative framework by 2026, a pilot phase could start in 2027, followed by a public rollout in 2029.

The ECB stated that the selection of the Digital Euro Service Platform (DESP) marks a major milestone. Five external providers have been contracted to help build and maintain the infrastructure.

ECB Executive Board member Piero Cipollone highlighted that the digital euro will not replace cash but will complement it, ensuring faster, cheaper, and more secure payments while maintaining access to public money.

However, critics remain skeptical, arguing that central bank digital currencies (CBDCs) could increase government oversight and threaten privacy. Pro-crypto voices claim that CBDCs might limit financial freedom, while the ECB insists the project will balance innovation, security, and trust, reinforcing Europe’s monetary sovereignty in a rapidly evolving digital economy.