European Central Bank to ‘Accelerate’ CBDC Plans, Eyeing 2029 Digital Euro Rollout

The European Central Bank has been told to “accelerate” the process of developing the digital euro—a central bank digital currency, or CBDC—by the European Council. If the European Parliament passes the necessary regulations in 2026, then the digital euro will be piloted in 2027 and, if successful, formally rolled out across Europe in 2029.

Christine Lagarde, president of the European Central Bank, announced via social media on Friday that the Governing Council is moving into the “next and final phase” of developing its CBDC. She explained that the digital euro is “important” as the European Central Bank aims to digitize cash, thereby reducing reliance on physical notes.

“The European Council has asked us and all those involved to accelerate the process so that we can roll out the digital euro as early as possible,” Lagarde explained. “This is a big project because the euro is our currency, your currency—it brings us together. It’s a symbol of trust in our common destiny. So, off we go with the digital euro in that next and final phase of the preparation.”

The digital euro is what many define as a CBDC, which is simply a digital form of a fiat currency. They are distinctly different from stablecoins, as they do not use public blockchains to settle transactions and are issued by central banks. In this case, the digital euro will not use digital ledger technology, though it will borrow “key design principles.”

Crypto enthusiasts have long opposed CBDCs, citing concerns about privacy, centralization, and the potential for central banks to freeze funds. That said, stablecoin issuers like Tether and Circle can also freeze funds, and they regularly do when wallets are linked to hacks or other criminal activity.

The ECB press office did not respond to Decrypt’s request for comment regarding the freezing process for the digital euro.

In a blog post, the European Central Bank explained that the European Parliament next needs to pass regulations on the establishment of the digital euro. If done during 2026, a “pilot exercise” and the first “initial transactions” could take place as early as mid-2027. This would prepare the digital euro for a formal, Europe-wide release in 2029.

The European Central Bank estimates that the total development costs for the digital euro will be €1.3 billion, or approximately $1.5 billion, up until the first issuance in 2029. Subsequent operating costs are estimated to be €320 million a year, or $369 million.

Europe isn’t the only locale plotting a CBDC. Russia, China, and India have all started their own respective CBDC pilots, while Nigeria launched its eNaira in 2021. The U.S., by contrast, has prohibited the use of a CBDC within the country, via an executive order signed by President Trump in January, keeping a campaign promise.

CBDCs are often seen as potential rivals to stablecoins, which are crypto tokens that attempt to track the price of fiat currencies, often by holding reserves. Following Trump’s inauguration, the U.S. has embraced stablecoins with the passing of the GENIUS stablecoin act. Plus, the Trump-backed World Liberty Financial has released its own stablecoin in USD1.

As a result, stablecoins are becoming a bigger business than ever with a total market capitalization of $307.4 billion, according to DefiLlama. It’s worth noting that the majority of these tokens are pegged to the U.S. dollar, with Tether even putting a pause on minting euro-backed stablecoins in 2024 due to hostile regulators.