ECB to pilot digital euro in mid-2027, aims for issuance in 2029

The European Central Bank (ECB) will begin a controlled 12-month pilot of a digital euro in mid-2027 and targets initial issuance in 2029, pending EU legislation. After two years of preparatory work, the project entered a technical readiness phase in November 2025. Current work focuses on building the Digital Euro Service Platform (DESP), testing infrastructure components, and engaging licensed banks, payment providers, retailers and central bank staff. The pilot will test four transaction scenarios in a closed environment and inform resilience, privacy and operational design. The digital euro will coexist with cash on a centralized Eurosystem settlement platform that incorporates some distributed-ledger design principles (but is not blockchain-based). Access will be via accounts held at licensed banks and payment providers; users will fund digital-euro accounts from existing accounts and transact via apps, cards or devices. Rollout depends on EU legislators finalizing rules (Council set its position in Dec 2025; Parliament expected to conclude around May). The ECB says the digital euro aims to protect monetary sovereignty, reduce reliance on non-EU payment networks, lower payment costs, and ensure public access to a trusted, low-cost payment tool. The ECB highlights privacy, legal safeguards and market stability as prerequisites and has partnered with accessibility groups to support elderly and disabled users.