EU Mandates Digital Euro by 2029, Replacing Cash for Large Transactions

The European Union plans to introduce a mandatory central bank digital currency (CBDC) by 2029, aiming to replace standard financial transactions that occur digitally.

According to the European Central Bank's website, the EU intends to fully implement the 'digital euro' by 2029, pending the adoption of relevant regulations by the end of this year.

A 12-month pilot program will begin in the second half of 2027 to ensure a smooth rollout of the CBDC in 2029. Over 50 payment service providers have already signed on to join the digital euro pilot.

The European Commission states that the digital euro 'would offer greater choice to consumers and businesses in situations where physical cash cannot be used'. This includes all purchases over €10,000, as the EU has announced a ban on cash purchases above this level starting in 2027 to combat money laundering.