The ECB outlines progress and plans for the digital euro, including phases of development, stakeholder engagement, and pilot activities, aiming for potential issuance in 2029.
The European Central Bank (ECB) has provided an update on the development of the digital euro. The project is currently in the ongoing preparations phase, which began in November 2025, focusing on advancing technical readiness, market engagement, and supporting legislative processes. A pilot exercise is planned for mid-2027, with potential first issuance targeted for 2029, assuming EU legislation is adopted in 2026.
The ECB assures that even under highly conservative stress scenarios, digital euro holdings would not threaten financial stability. The project emphasizes the role of banks and payment service providers (PSPs) in distribution, with safeguards such as holding limits and no remuneration for holdings for businesses. A compensation model for banks is outlined, involving no scheme or processing fees for issuing and acquiring banks, and capped merchant service charges and inter-PSP fees.
The digital euro will coexist with private solutions, featuring co-badging with physical cards and integration into existing payment systems to foster acceptance and reduce costs. The project includes a 12-month pilot starting in late 2027, testing four use cases with selected PSPs and merchants, to refine the design and ensure readiness for market deployment.
Further information and supporting materials are available, including reports on progress, FAQs, and technical analyses. Contact: digitaleuro@ecb.europa.eu.
