The ECB outlines progress on the digital euro, digital payments, and cross-border initiatives, with phases of investigation, preparation, and ongoing development aiming for potential issuance in 2029.
The European Central Bank (ECB) has provided an update on its digital euro and digital payments strategy. The investigation phase ran from October 2021 to October 2023, focusing on technical exploration and design. The current preparation phase started in November 2023 and will continue until October 2025, involving testing and experimentation.
The ECB aims to be ready for potential digital euro issuance in 2029, with a pilot planned for 12 months starting in the second half of 2027. The digital euro is envisioned as a digital cash form available across the euro area, supporting both online and offline payments.
Key features include a distribution model involving EU-licensed payment service providers, safeguarding customer relationships, and establishing a European acceptance infrastructure. The strategy emphasizes financial stability, innovation, and integration of digital assets into the monetary system.
Additional initiatives include tokenisation of assets to improve efficiency in capital markets, support for a tokenised euro for wholesale transactions via Pontes & Appia, and efforts to enhance cross-border payments through interlinking systems and multi-currency settlement. The ECB continues to explore these developments in line with G20 objectives and international collaboration.
Further information, FAQs, progress reports, and updates are available on the ECB’s dedicated webpages.
