Europe's long-anticipated digital euro project, a central bank digital currency (CBDC), faces further delays, with its launch now not expected until mid-2029. This new timeline highlights the complex legislative journey ahead for the ambitious initiative.
Prolonged Path to a Digital Euro
Piero Cipollone, a member of the European Central Bank (ECB) Executive Board, recently indicated that mid-2029 is a "reasonable estimate" for the digital euro's debut. This projection signifies another postponement for the currency, despite strong calls to accelerate its development as a means to safeguard Europe's financial sovereignty against the rising influence of U.S. stablecoins. The primary bottleneck, according to Cipollone, is the European Parliament, whose legislative approval is crucial for the project to advance.
Navigating Legislative Hurdles and Next Steps
The journey towards a digital euro is currently deeply entrenched in the legislative process. While the ECB continues active discussions across EU member states, a "general approach" agreement among these states is aimed for by year-end. The Parliament is expected to adopt its position on the digital euro by May 2026. Furthermore, EU ministers recently reached a compromise on the digital euro's roadmap, including proposed limits on holdings. Despite the extended timeline, preparatory work continues, with the ECB set to decide in October whether to proceed to the next phase. An MEP is also slated to present a progress report on October 24, kicking off a period of amendments and further debate among lawmakers.
