ECB warns legislative delays could postpone digital euro launch

ECB Executive Board member Piero Cipollone has cautioned that legislative setbacks could delay the launch of the digital euro, which was initially projected for 2029. Speaking at the European Parliament’s Committee on Economic and Monetary Affairs, Cipollone urged EU negotiators to finalize the digital euro legislation by the end of the year to keep the 2029 launch on schedule.

The regulator's Executive Board member emphasized that passage of the regulation, a component of the EU’s Single Currency Package, would provide the ECB with the necessary legal assurance to complete its preparations. Cipollone warned that any delays in adopting the legislation could postpone the digital euro's introduction, potentially increasing Europe’s reliance on foreign payment providers and hindering European businesses' competitiveness.

The ECB aims to be prepared for a potential first issuance in 2029, contingent upon the EU's adoption of the regulation. After the legislation is enacted, the ECB’s Governing Council will determine the timing and conditions for issuing the digital euro. The European Parliament’s economic affairs committee endorsed its stance on the digital euro legislation in June, and it adopted its negotiating position in July, paving the way for dialogues with EU member states.

The ECB is currently developing a 12-month pilot set to commence in the second half of 2027, during which payment providers and selected merchants will test a beta version of the digital euro. This warning arrives as the ECB prepares for a leadership transition, with President Christine Lagarde announcing her resignation in October, effective February 7, 2027, ahead of the scheduled pilot.