Digital Euro Could Launch by 2029 to Protect EU Sovereignty, ECB Official Says

The European Central Bank is moving forward with plans for a digital euro, with real transaction tests expected in 2027 and a potential rollout as early as 2029, according to ECB Executive Board member Piero Cipollone. Speaking on the bloc's digital currency initiative, Cipollone stressed that the digital euro is essential for protecting the European Union's 'sovereignty' in an increasingly digital payments landscape. The timeline hinges on legislation expected to be passed this year, which would provide the legal framework for the central bank digital currency (CBDC). Cipollone's remarks underscore the ECB's urgency to reduce dependence on non-European payment providers and ensure that the euro remains relevant as cash usage declines. The digital euro would be a digital form of central bank money, accessible to all citizens and businesses, and designed to complement cash rather than replace it. With key legislative decisions pending, the next few months will be critical in determining whether the EU can meet its ambitious timeline and position itself as a leader in the global race for CBDCs.