ECB Targets 2029 Launch for Digital Euro Amid Ongoing Preparations

The European Central Bank (ECB) targets a 2029 launch for the digital euro, with ongoing preparations extending beyond October 2025. The timeline depends on EU laws and technical readiness.

Continued Preparation

The ECB began its preparation phase in November 2023, focusing on rules and testing.
Key tasks include finalizing the rulebook, privacy and anti-money-laundering measures, and setting up infrastructure.
No issuance decision will occur until the legal framework is established.

Market Implications

The 2029 target allows four years for legislative and market adjustments.
Banks, fintech firms, and payment platforms are closely monitoring developments.
The aim is to maintain public money's relevance amid declining cash use.

Political and Technical Considerations

Political signals, including actions by US President Donald Trump, influence discussions.
The ECB seeks to balance privacy protection with anti-money-laundering compliance.
Questions remain about design features, such as interest on retail accounts and offline usage.

The 2029 timeline serves as a target rather than a guarantee, contingent on legislative progress and successful technical trials.