The European Central Bank (ECB) confirmed this Thursday that it is preparing for a possible first issuance of the digital euro in 2029, a measure that could transform the way citizens and companies deal with money. The information was provided by the monetary institution after the ECB Council meeting in Florence, Italy, dedicated to defining monetary policy and the next stages of the project.
According to Pplware, a website specializing in technology, the final decision on the launch of the digital currency still depends on European legislative approval, scheduled for 2026.
If the regulation is adopted on time, the ECB could carry out pilot projects and experimental operations as early as mid-2027, paving the way for the official launch two years later.
The institution considers that the need for a public digital payment method is increasingly urgent, as cash transactions decline across Europe. “The euro is a symbol of confidence and European unity.
We want to ensure that the most tangible form of our currency, money, evolves over time and adapts to the future”, said ECB President Christine Lagarde, cited by the same source.
How much will the digital euro cost the ECB and banks
The ECB estimates that the total cost of developing the digital euro, including software, infrastructure and security, will amount to 1,300 million euros by 2029, the scheduled time for the first issuance. Annual operating costs are expected to be around 320 million euros, shared between the ECB and national central banks, similar to what happens with the production of physical banknotes.
According to the same publication, commercial banks in the euro zone will also have to support significant investments.
The member of the ECB’s executive committee, Piero Cipollone, estimated that the banking sector could spend between 4,000 and 5,800 million euros on technological adaptation, which is equivalent to around 3.4% of the annual IT systems update budgets of the largest financial institutions in the euro zone.
Still, the ECB believes the project will bring substantial benefits, reducing long-term operating costs and strengthening the security and resilience of financial transactions in Europe.
A digital currency that does not replace physical money
Contrary to what some fear, the digital euro will not replace banknotes and coins in circulation. It will be a complement, offering advantages such as simplicity, privacy and availability throughout the euro zone, explained the ECB.
According to , the project aims to allow citizens to enjoy the same security guarantees as physical money, but adapted to the digital environment. The digital euro could also reduce costs for traders, while creating a platform for private companies to innovate and develop new financial services.
The ECB also supports the European Commission’s proposal that reinforces the right to pay in physical cash, ensuring that the new system does not compromise consumers’ freedom of choice.
The final decision on the issuance of the digital euro should be taken after the adoption of European legislation, scheduled for 2026. If the calendar remains the same, Europe could enter, in less than a decade, a new monetary era: where the euro will become, for the first time, a truly digital currency, with all the implications that this represents for the economy, banks and citizens’ daily lives.
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