European Central Bank moves digital euro project into next legislative phase
Following the European Parliament’s vote, the digital euro project has entered trilogue and could be issued in 2029.
The European Central Bank (ECB) says the digital euro project has entered a new phase after the European Parliament adopted its negotiating position, allowing trilogue negotiations with other EU institutions to begin.
Speaking in Rome, ECB Executive Board member Piero Cipollone said the digital euro could be introduced in 2029 if the legislative process is completed by the end of 2026. He said the project is intended to complement cash, strengthen Europe’s payments infrastructure and preserve the role of banks in the digital payments ecosystem.
The ECB also announced that a pilot involving 36 payment service providers, including banks and non-bank institutions, will begin in September 2027. The exercise is intended to support technical preparations ahead of any potential launch.
Under the proposed model, banks would distribute the digital euro and maintain customer relationships, while the Eurosystem would continue working with the payments sector to prepare the wider ecosystem for a possible rollout.
Why does it matter?
The adoption of the European Parliament’s negotiating position marks an important step towards establishing the legal framework for the digital euro. If trilogue negotiations conclude successfully, the project will move from design and experimentation towards implementation.
The ECB’s approach also reflects a broader effort to modernise Europe’s payment infrastructure while preserving the role of commercial banks and reducing dependence on non-European payment providers. The digital euro is therefore both a payments initiative and part of the EU’s wider strategy for financial and digital sovereignty.
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