ECB's Digital Euro Project Advances in Spain with 2029 Launch Target

The European Central Bank (ECB) is making progress on its digital euro project, with Spain playing a key role in its development. According to Amaia Jaureguizar, project director of the digital euro at Inetum, a company collaborating with the Bank of Spain, the initiative will allow users to make payments using an electronic version of cash issued by the ECB.

Jaureguizar emphasizes that there is no intention to replace traditional cash and that the digital euro will be designed to complement banknotes and coins. The project aims to enable offline payments, allowing balances to be pre-stored on devices for use without internet access.

The ECB has selected 36 payment service providers for a twelve-month pilot starting in mid-2027, which will test connected and offline payments between individuals, online shopping, and transactions at everyday venues. In Spain, employees of the Bank of Spain will initially use this early version of the digital euro.

The project is expected to be technically ready for potential issuance by 2029, pending European legislative processes. The ECB is also working on a new series of euro banknotes with enhanced security features and foil counterfeiting.