The European Central Bank provides an update on the digital euro project, including phases of development, technical preparations, pilot activities, and legislative process milestones, with a potential issuance in 2029.
The European Central Bank (ECB) held an executive committee meeting on 18 February 2026 to discuss the progress of the digital euro initiative.
The project is in the current phase since November 2025, focusing on technical readiness, market engagement, and supporting legislation. A pilot exercise involving real transactions is planned for mid-2027, with the aim to be ready for potential issuance during 2029, contingent on legislative adoption in 2026.
The digital euro will be integrated into the existing payment ecosystem, with banks and EU-licensed payment service providers (PSPs) at the core of distribution. The model emphasizes customer relationships, safeguards, and fair compensation for banks.
The compensation model aims to reduce costs for PSPs by capping merchant service charges and inter-PSP fees. The digital euro will coexist with private solutions like digital wallets and private card schemes, leveraging co-badging and standardization to foster acceptance and scalability across Europe.
A 12-month pilot starting in the second half of 2027 will test four use cases, involving selected PSPs, merchants, and Eurosystem staff. The pilot aims to refine the design, ensure technical readiness, and gather feedback for future scaling.
The legislative process includes trilogues, with the European Parliament adopting its position in May 2026 and the Council of the European Union adopting its position on 19 December 2025. Key proposed changes include fee caps, flexible funding, cash services, multiple accounts, and enhanced user interface requirements.
The ECB provides additional materials and contact information for further updates on the digital euro project.
