ECB lays the groundwork for the launch of the digital euro
The European Central Bank has announced plans to finalize preparations for the potential launch of the digital euro by 2029, Qazinform News Agency reports.
According to a joint article by ECB Executive Board member Piero Cipollone and Executive Vice President of the European Commission Valdis Dombrovskis, the first preparatory steps, including pilot exercises and test transactions, may begin as early as mid-2027.
Why Europe needs a digital euro
Payment systems in Europe have evolved constantly from barter to coins, banknotes, and bank cards. Today, in an era of rapid digitalization, the transition to a new form of currency is becoming a natural step.
At present, the only form of central bank money available to the public remains physical banknotes and coins, while a digital equivalent of such public money does not yet exist. Meanwhile, more and more Europeans prefer cashless payments and online purchases. The digital euro, as envisioned by the ECB, is intended to serve as a new format of cash that will complement traditional banknotes and coins rather than replace them.
“Europeans will have the choice to pay in euro banknotes and coins or in digital euro. The digital euro is designed to complement, not replace, cash,” the authors emphasize.
In parallel, the ECB is developing a redesigned next generation of euro banknotes to make them more modern, user-friendly, and secure.
Two key legislative proposals
The Single Currency Package introduced by the European Commission includes two draft laws.
The first guarantees that citizens and businesses across the euro area will retain access to cash euro and continue using it without restrictions.
The second establishes the regulatory framework for the digital euro. It is expected to be free of charge, simple to use, accessible to all, and offer a high level of privacy protection, closely mirroring the confidentiality of cash payments. The digital euro will function both online and offline, allowing transactions even without an internet connection.
Europe’s strategic autonomy
The transition to the digital euro carries not only technological but also geopolitical significance. Europe’s payments market is currently dominated by foreign providers, creating risks for economic security and limiting the EU’s ability to act autonomously amid growing global tensions.
The digital euro will not compete with private payment solutions but will complement them, opening new opportunities for the expansion of European fintech innovations.
A decisive year for the project
The year 2026 will be decisive. Leaders of euro area countries have already welcomed the latest progress and called for accelerating legislative work. If the regulatory framework is adopted on time, the ECB will launch its pilot phase in 2027.
In 2026, Bulgaria will become the twenty-first member of the euro area, further reinforcing the need to adapt the single currency to the realities of the digital age.
Kazakhstan is also moving toward the full integration of its own central bank digital currency. Earlier, Qazinform News Agency reported that the digital tenge will be legally recognized as a new form of national currency under the updated banking legislation.
