The European Central Bank (ECB) has assured that Christine Lagarde's early departure as president will not delay the launch of the digital euro. Speaking at the Web Summit in Lisbon, Alessandro Giovannini, an adviser to the digital euro project, emphasized that the initiative remains on track, with a pilot program set to begin next year and EU lawmakers committed to finalizing the legislation by the end of 2026.
Giovannini highlighted the strategic importance of the digital euro, describing it as a 'European project' rather than solely an ECB endeavor. Despite leadership changes, including Lagarde's planned exit on February 7, 2027, and the departures of other key ECB officials, the project's timeline remains intact. The ECB aims to issue the digital euro by 2029, with technical preparations progressing independently of ongoing legislative discussions in Brussels.
One of the unresolved issues in the negotiations is how merchants' fees will be calculated, a critical aspect of the digital euro's business model. The ECB has already selected 36 banks and payment firms, including Deutsche Bank and Stripe, for a 12-month pilot starting in the second half of 2027. The system's infrastructure will be funded by the ECB and offered for free to participants, with an estimated development cost of €1.3 billion before issuance and an annual operating cost of €320 million from 2029.
Addressing concerns about privacy, Giovannini assured that offline digital euro transactions would function like cash, with no digital footprint. Online payments would be visible to banks but only pseudonymized data would reach the ECB, contrasting with current card schemes. The digital euro will not offer interest, aligning with traditional banknotes, though banks and fintech firms could provide their own rewards.