Europe Accelerates Digital Euro Plan Amid Resistance

As the global monetary balance is reconfigured under the pressure of digital technologies and sovereign ambitions, Europe goes on the offensive. On October 29, the ECB approved a new technical phase of the digital euro project, the cornerstone of a future European payment system. The goal is to launch, by 2029, a public digital currency capable of competing with private solutions and foreign initiatives, while ensuring monetary control within the euro area.

The ECB initiates the technical phase : towards a gradual launch in 2029

On October 29, the ECB Governing Council officially decided to move to a new phase of the digital euro project. This step aims to “technically prepare for a potential launch”.

Specifically, this means that the Eurosystem teams will start technical developments, test infrastructures, refine use cases, and organize the distribution of this digital currency through banks and payment service providers.

The ECB clarifies that a “pilot could be conducted as early as mid-2027”, provided the legislative framework is finalized in time. The target deadline for a gradual launch remains the year 2029, which has already been mentioned several times by European officials.

This new phase follows the investigation period started in late 2023. It marks a clear intention of the ECB to anticipate any political green light, without rushing a definitive implementation. According to the Governing Council’s terms, this step remains purely preparatory. Concretely, the coming years will be dedicated to :

• Developing the technical infrastructures of the digital euro, ensuring robustness, security, and interoperability with existing systems ;

• Evaluating the distribution methods of the currency, particularly the role of commercial banks and payment service providers ;

• Conducting large-scale tests through a pilot project envisaged from mid-2027, to identify concrete uses and obtain on-chain data for any necessary adjustments ;

• Finalizing functional aspects, especially regarding user experience, financial inclusion, and offline use.

All these works aim to ensure that, if political conditions are met, the Eurosystem will be able to deploy an operational version of the digital euro by 2029. However, the ECB reminds that this phase does not equate to political approval of the project.

A political and social battle far from won

Beyond institutional considerations, the digital euro project is already sparking heated debates among stakeholders. If the ECB wants deployment in 2029, the European Parliament must first adopt the necessary legislation.

However, parliamentary debate has been dragging since 2023, slowed by strong internal divisions and the 2024 European elections. Many member states, as well as banking sector representatives, express reservations.

The project is seen by some as an attempt at excessive centralization, likely to disrupt economic balances and call into question the confidentiality of payments. In September, Piero Cipollone, a member of the ECB Executive Board, nevertheless showed some optimism, stating that “the Parliament could reach a consensus by May 2026”.

The expressed reluctance is far from marginal. Several actors fear that the introduction of a digital euro may encourage disintermediation of the traditional banking system, in favor of an infrastructure directly controlled by central banks.

Moreover, the issue of privacy fuels criticism. Many question the surveillance capabilities such a system could imply. To these concerns, the ECB responds by highlighting potential benefits: better financial inclusion, a resilience tool against cyberattacks or systemic crises, and the guarantee of a public digital means of payment, free and universal. “The digital euro would ensure all Europeans access to a digital means of payment accepted everywhere, including in case of war or cyberattack”, Cipollone stated.

The future of the digital euro, which still divides European decision-makers, will therefore depend as much on the technical success of its development as on its ability to convince citizens and policymakers. The Eurosystem will thus have to ensure the protection of personal data, maintain a balance between the public and private sectors, and avoid popular rejection. In this perspective, the next two years will be crucial. If a clear legislative framework emerges by 2026, Europe could equip itself with a strategic tool against payment giants and private currencies.