Key Takeaways
- The ECB is pressing ahead with plans for a digital euro despite mounting criticism.
- Officials are targeting a 2029 rollout, with legislation expected by 2026.
- Lawmakers warn the CBDC could pose privacy risks and undermine commercial banks.
The European Central Bank (ECB) is doubling down on its controversial central bank digital currency (CBDC), pledging to launch a digital euro by 2029 even as lawmakers across the bloc warn of risks to privacy and commercial banking stability.
ECB board member Piero Cipollone defended the plan during testimony before parliament this week, framing the project as a public good that would guarantee access to payments even in moments of crisis.
“The digital euro can have a meaningful impact not just as a technological innovation, but as a public good that strengthens Europe’s resilience,” he said.
A Four-Year Roadmap
The digital euro project began in 2020 with the publication of an initial report and entered its investigative phase the following year.
After three years of technical testing and public consultations, the ECB moved into the preparation stage in late 2023, drafting a rulebook and advancing legislative proposals.
Under the current timeline, lawmakers in the European Parliament, the European Council, and the European Commission would need to finalize legislation by mid-2026.
The ECB would then require roughly three years to build and test infrastructure, putting a potential launch in 2029.
Concerns From Parliament
Despite ECB assurances that the digital euro would “complement” cash and protect privacy—especially with an offline payment option—parliamentarians remain unconvinced.
Lawmakers argue that giving citizens access to central bank accounts could drain deposits from private banks and concentrate too much power in Frankfurt.
Others remain skeptical of privacy guarantees. Cipollone stressed that the ECB “will not know anything about the payer and the payee,” but critics warn that technical safeguards could be weakened over time.
CBDCs Fall From Favor Globally
Just three years ago, CBDCs were a top priority for governments, with more than 170 projects in development worldwide.
However, enthusiasm has waned.
The United States, the U.K., and other advanced economies have scaled back or shelved CBDC plans over concerns about privacy, surveillance, and the lack of clear public demand.
The ECB remains one of the few central banks in advanced economies pressing ahead.
Still, the project cannot proceed without parliamentary approval—a hurdle that could delay or reshape its scope.
For now, the digital euro faces a paradox: presented as essential for Europe’s financial independence, yet deeply contested at home.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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