European Central Bank to ‘Accelerate’ CBDC Plans, Eyeing 2029 Digital Euro Rollout

The European Central Bank has been instructed to “accelerate” the process of developing a central bank digital currency, the digital euro. CBDC-By the European Council. If the European Parliament passes the necessary regulations in 2026, the digital euro will be piloted in 2027 and, if successful, officially rolled out across Europe in 2029.

European Central Bank President Christine Lagarde announced via social media on Friday that the Governing Council is moving to the “next and final stages” of CBDC development. He explained that a digital euro is “important” as the European Central Bank aims to digitize cash and thereby reduce dependence on banknotes.

“The European Council has called on us and all stakeholders to accelerate the process so that we can introduce a digital euro as soon as possible,” Lagarde said. explained. “This is a big project, because the euro is our currency and your currency. The euro unites us. It is a symbol of faith in our common destiny. So we will start using the digital euro in the next and final stage of preparation.”

The digital euro, defined by many as a CBDC, is simply a digital form of fiat currency. These are distinctly different from stablecoins as they do not use public blockchains to settle transactions and are issued by central banks. In this case, a digital euro would not use digital ledger technology, but would borrow “key design principles”.

Cryptocurrency enthusiasts have long opposed CBDCs, citing concerns about privacy, centralization and the possibility that central banks could freeze funds. That said, stablecoin issuers like Tether and Circle can also freeze funds, and they do so regularly if your wallet is hacked or linked to a hack. Other criminal acts.

The ECB press office did not respond. decryptionRequest for comments on the digital euro freezing process.

in blog postthe European Central Bank explained that the European Parliament would then need to pass regulations on the establishment of a digital euro. If implemented in 2026, “pilots” and first “initial transactions” could occur as early as mid-2027. This will set the stage for the official release of the digital euro across Europe in 2029.

The European Central Bank estimates that the total cost of developing a digital euro by first issuance in 2029 will be 1.3 billion euros, or about $1.5 billion. Subsequent operating costs are estimated at 320 million euros, or $369 million, per year.

Europe is not the only region planning CBDCs. Russia, Chinaand India While everyone is launching their own CBDC pilots; Nigeria launches eNaira In contrast, the United States has banned the use of CBDC within the country. presidential order President Trump signed it in January, keeping his campaign promise.

CBDCs are seen as a potential rival to stablecoins, which are cryptographic tokens that often seek to track the price of fiat currencies by holding reserves. Since President Trump took office, the United States has embraced stablecoins. GENIUS Stablecoin Law. Additionally, President Trump supports world liberty financial We have released our own stablecoin 1 dollar.

As a result, stablecoins have become a bigger business than ever, with a market capitalization of $307.4 billion. Defilama. It is worth noting that the majority of these tokens are pegged to the US dollar, and Tether has even been suspended. Minting a euro-backed stablecoin In 2024 due to hostile regulators.