The European Central Bank stated on Thursday that if it can get lawmakers’ timely approval for a project it believes is essential to the financial autonomy of the euro zone, it may begin a trial program of its digital currency in 2027.
In an era of increased geopolitical tension, where financial autonomy and resilience are seen as crucial to preserving Europe’s economic sovereignty, the ECB has positioned itself as a strategic alternative to private, U.S.-dominated payment methods like credit cards and stablecoins.
Following four years of research and planning, the ECB announced that it was now considering conducting a pilot, which may result in some digital euro transactions as early as mid-2027, followed by a full-scale launch two years later.
“A pilot exercise and initial transactions could take place as of mid-2027,” the European Central Bank said in a statement.
“The whole Eurosystem should then be ready for a potential first issuance of the digital euro during 2029.”
However, this was contingent upon parliamentarians in the European Union, comprising the European Parliament, Council, and Commission, enacting legislation that would serve as the foundation for the digital euro the next year.
It has been challenging to secure that, since lawmakers have heard banks’ worries that the digital euro may deplete their funds and be too expensive to put up.
The final decision on whether to introduce a digital currency, as well as the amount of euros that citizens can hold, has been made by EU countries.
The European Central Bank (ECB) stated that it will continue to collaborate with lawmakers, estimating the industry’s cost to be between 4 billion euros ($4.66 billion) and 5.77 billion euros after accounting for savings and synergies.
