Europe preps Digital Euro to enter circulation in 2029

Steven

Europe preps Digital Euro to enter circulation in 2029

Summary

The European Central Bank’s Governing Council has approved work to bring a Digital Euro into circulation, targeting a pilot in 2027 and possible public availability in 2029. The initiative aims to modernise central bank money, reduce reliance on non‑European payment intermediaries and provide a common digital payments infrastructure for banks across the Euro area. The ECB estimates development costs at €1.3bn and annual operating costs of around €320m.

Key Points

  • ECB approved moving the Digital Euro project from preparation to development, aiming for a pilot by 2027 and public use by 2029.
  • The Digital Euro is a central bank digital currency (CBDC) designed to provide a digital form of central bank money.
  • One driver is payment sovereignty: two thirds of digital payments in the Euro area are intermediated by non‑European companies.
  • Italian central bank governor Fabio Panetta says the new infrastructure (a common “rail”) will let European banks compete across the continent.
  • Privacy, programmability and security remain major concerns — critics warn of transaction tracing and potential restrictions on how funds can be spent.
  • ECB cost estimates: €1.3bn to get into circulation and about €320m per year to operate.

Content Summary

The ECB says money is a public good and that central bank money must have a digital form as society moves away from banknotes. Christine Lagarde framed the Digital Euro as necessary to keep the currency “fit for the future.” The move follows a preparation phase that began in November 2023; the Governing Council judged that phase a success and authorised the next stage of work.

Supporters argue a Digital Euro will strengthen European payment sovereignty by reducing dependence on non‑EU payment service providers and by giving European banks a shared infrastructure to expand services continent‑wide. Opponents and privacy advocates caution that CBDCs could enable transaction surveillance, programmable restrictions on spending and create new attack surfaces for fraud and theft.

Context and Relevance

This decision sits within a global trend of central banks exploring CBDCs. For businesses, banks and policymakers in Europe, the Digital Euro could reshape payments rails, data flows and competition in the payments market. Technical design choices (privacy protections, offline capability, programmability limits) and legal/regulatory frameworks will determine its impact on consumer rights, commerce and financial stability.

Why should I read this?

Short version: this could change how you pay and how banks fight for your business. If you work in finance, payments, public policy or data privacy — and frankly anyone who uses cards or apps — it’s worth a skim. The headlines give the timeline and costs, but the real action will be in the design decisions (privacy, programmability, security) that follow. We’ve flagged the bits that matter so you don’t have to read the whole policy paper.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/31/digital_euro_approved/