The European Central Bank intends to launch the digital euro by 2029, if the appropriate legal framework is approved by then. This is reported by Bloomberg, citing sources familiar with the progress of the project.

ECB staff will continue preparatory work after the current stage, which ends at the end of October.

The initiative to create a digital euro has been under discussion since 2020, with formal preparations starting at the end of 2023. According to the agency’s sources, the next steps will be agreed at a meeting in Italy, where ECB representatives hope to gain political support.

If everything goes according to plan, this meeting allows starting the legislative approval process in the next four years, the authors of the material claim.

However, the draft remains controversial among market participants. Banks, MEPs and some EU member states have expressed doubts about the need for a digital euro, pointing to risks of data leakage and a weakened role for commercial banks.

A bill to develop the asset is under consideration by the European Parliament but is moving slowly due to political differences and the 2024 elections, experts said. According to ECB board member Piero Cipolloni, consensus on the document may not be reached before May 2026.

The politician noted that the digital euro will ensure that Europeans have access to secure and free digital payments even in crises — be it war, infrastructure failure or cyberattack.

Amid the European debate, few countries have actually moved in this direction. According to the Atlantic Council think tank, only Nigeria, the Bahamas, and Jamaica have launched their central bank digital currency (CBDC), while 49 other countries are in the pilot stage.

According to the Human Rights Foundation, CBDCs can improve the efficiency of payments and the accessibility of financial services. However, they also pose threats to privacy and increase the risks of corruption in government oversight.

Despite the political controversy, the digital euro project remains a priority for the ECB. The regulator sees in it a tool to strengthen the financial sovereignty of Europe and an alternative to private stablecoins, experts say in Bloomberg.