ECB Targets End-2026 for Digital Euro Legislation

European Central Bank (ECB) President Christine Lagarde has set an ambitious target for the development of the digital euro. Speaking at a meeting of the Economic and Financial Affairs Council in Dublin, she stated that legislation for the digital currency could be finalized by the end of 2026.

The pilot project for the digital euro is expected to begin in mid-2027, which aligns with the current schedule. Lagarde also announced the launch of 'Pontes,' a digital euro solution based on distributed ledger technology (DLT) that will connect market DLT platforms with TARGET services for wholesale financial transactions using central bank money.

Pontes is scheduled to begin operations on Monday, although no further details were provided. In addition to discussing the digital euro, Lagarde touched on the economic outlook, noting that interest rates are not moving 'in sync' with energy prices and warning of rising bond yields as part of a global trend.

Lagarde also left open the possibility of leaving her position at the ECB before the end of her term in October 2027. When asked about reports of a possible early resignation, she replied that 'we shall see.'