ECB says digital euro could miss 2029 target amid EU delays

Cipollone told the European Parliament’s Committee on Economic and Monetary Affairs that completing negotiations would allow the ECB to finish preparations and set a possible issuance date. The Single Currency Package covers both the digital euro and the legal tender status of euro banknotes and coins. The ECB can develop the technology, but cannot issue the currency without legal authorization. Its Governing Council will decide whether and when to launch it once the legislation is in place.

Parliament approved its negotiating position on July 9, with 416 votes in favor, 169 against and 22 abstentions. Its Economic and Monetary Affairs Committee had backed the proposal on June 23 by 43 votes to 14, with one abstention. Fernando Navarrete Rojas, a Spanish European People’s Party member, leads Parliament’s negotiating team. The Council of the European Union adopted its position in December 2025; negotiators from the Council, Parliament and Commission held another round of talks on November 5, but no final agreement has been announced.

Parliament’s position calls for privacy safeguards, limits on individual holdings and requirements for businesses to accept the digital euro, with some exemptions. It also seeks free basic services for consumers, including opening accounts and making payments, and restrictions on fees for merchants and payment providers. Cipollone has warned that delays could leave European payments reliant on providers from outside the region and make it harder for domestic financial technology firms to compete. In an October 24 interview, he said two-thirds of online card payments in Italy use non-European card schemes; smaller merchants can face processing fees up to four times those charged to larger businesses.

The ECB’s pilot remains scheduled for the second half of 2027. It will run for 12 months using a beta version without legal tender status, involving ECB employees, staff from 19 national central banks, selected merchants and 36 payment service providers. Participants will test cafeteria purchases, person-to-person transfers and online shopping. The ECB selected the providers in July from more than 50 applicants and expects to name participating online and mobile merchants in early 2027. Separate innovation tests from January to June 2027 will examine conditional payments and possible artificial intelligence applications.

Private euro stablecoin plans are advancing alongside the legislative process. Qivalis, a consortium backed by 37 banks in 15 countries, received authorization from the Dutch central bank in October to operate as an electronic money institution. It plans to issue a euro-denominated stablecoin, subject to further MiCA requirements; the token is not in circulation and would be privately issued, unlike central bank money. The ECB has also developed Pontes, a settlement platform launched in September with 18 participating institutions and market infrastructure operators. On November 2, it settled the European Stability Mechanism’s first digitally native benchmark bond, worth €1 billion, using central bank money.