.png){kind=logo}
The European Central Bank (ECB) warned that the planned launch of the digital euro in 2029 could be delayed if European Union lawmakers fail to complete the required legislation by the end of 2026. The warning comes as the central bank pushes EU negotiators to finalize the legal framework needed to move the project forward.
ECB Executive Board member Piero Cipollone raised the concern during a meeting of the European Parliament’s Committee on Economic and Monetary Affairs on November 10. He said completing negotiations on the EU’s Single Currency Package this year was important to keeping the digital euro project on schedule.
Cipollone said adopting the regulation would provide the legal certainty the ECB needs to complete its preparations. He warned that any delay in passing the legislation could postpone the digital euro’s introduction.
The ECB is targeting readiness for a potential first issuance in 2029, provided the regulation is adopted during 2026. However, the ECB’s Governing Council will make the final decision on whether and when to issue the digital currency after the legislation is approved.
The central bank has also highlighted the project’s importance for Europe’s payment sovereignty. Cipollone warned that continued dependence on foreign payment providers could affect the region’s ability to compete in the digital payments market.
The European Parliament’s Committee on Economic and Monetary Affairs approved its position on the digital euro legislation in June through a 43-14 vote. Parliament subsequently adopted its negotiating position in July, clearing the way for formal discussions with EU member states.
The remaining challenge is reaching an agreement with the European Council and European Commission before the end of 2026. With only weeks remaining in the year, the legislative timeline has become increasingly important for the ECB’s preparations.
Also Read: ECB Launches Pontes for Tokenized Asset Settlement in Europe
Alongside the legislative process, the ECB is preparing a 12-month pilot program scheduled to begin in the second half of 2027. The initiative will involve 36 payment service providers, selected merchants, ECB staff and representatives from 19 national central banks.
Participants will test a beta version of the digital euro through everyday transactions, including payments between individuals and purchases from businesses. The exercise will help assess the system’s technical capabilities and practical functioning before a potential rollout.
The ECB’s warning highlights how the project’s 2029 target depends on completing the legal framework first. Any delay in negotiations could affect the planned pilot and push back the timeline for introducing Europe’s proposed digital currency.