ECB Warns Legislative Delays Could Potentially Postpone Digital Euro Launch Beyond 2029

European Central Bank (ECB) Executive Board member Piero Cipollone has urged European Union lawmakers to finalize digital euro legislation by year-end, warning that delays could potentially postpone the launch beyond 2029. Cipollone indicated that a delayed introduction could heighten Europe’s dependence on foreign payment providers and diminish the competitiveness of European companies.

The ECB aims to be prepared for a potential first issuance of the digital euro in 2029, provided the EU adopts the necessary regulation this year. The European Parliament’s Committee on Economic and Monetary Affairs advanced its position on the digital euro legislation in June with a 43-14 vote, and Parliament adopted its negotiating stance in July. However, further legislative steps are required to enact the regulation.

Speaking at the European Parliament’s Committee on Economic and Monetary Affairs, Cipollone stressed the importance of timely legislative action. He cautioned that delays in adoption could postpone the digital euro’s introduction, consequently deepening Europe’s reliance on foreign payment providers and potentially hindering European companies’ ability to compete in the evolving digital payment landscape.

The ECB is preparing a 12-month pilot program for the digital euro, slated to commence in the second half of 2027. This pilot will involve payment providers and selected merchants testing a beta version of the digital euro. The ultimate decision on whether and when to issue the digital euro will rest with the ECB’s Governing Council following the passage of the legislation.

This warning coincides with an upcoming leadership transition at the ECB. President Christine Lagarde announced in October her departure on February 7, 2027, preceding the planned pilot program. The resolution of ongoing negotiations between EU member states and the European Parliament on the digital euro legislation remains uncertain.

Why This Matters

ECB Executive Board member Piero Cipollone urged EU lawmakers to finalize digital euro legislation by year-end to maintain a potential 2029 launch. The exact date of the digital euro launch if legislation is delayed remains uncertain, as does the final decision on whether and when the ECB’s Governing Council will issue the digital euro.

Broader Context

The warning comes as the ECB prepares for a leadership change, with President Christine Lagarde set to step down on February 7, 2027.