ECB Aims for 2029 Launch of Digital Euro

The European Central Bank (ECB) is on track to become the first major Western central bank to issue a retail central bank digital currency (CBDC), with the launch of a digital euro targeted for 2029. The ECB aims to strengthen Europe's payment infrastructure and reduce reliance on foreign payment providers and privately issued digital assets.

The legislative framework for the digital euro is expected to be concluded by the end of the year, after which the ECB will formally approve the project in January 2027. This marks a significant milestone, as it will be 25 years since euro banknotes and coins entered circulation.

The pilot phase of the digital euro is scheduled to begin in the second half of 2027, involving 36 banks and payment service providers from 19 countries, including Greece's Piraeus Bank, National Bank of Greece, and fintech company Revolut. The Bank of Greece is represented on the ECB's high-level digital euro task force by Sissy Papagiannidi, director of Payment and Settlement Systems.

The ECB officials argue that the rapid growth of US dollar-denominated stablecoins and recent US legislation governing the sector have reinforced the need for a digital euro to safeguard Europe's monetary sovereignty and strategic autonomy.