The next step will be negotiations between the European Parliament, the European Commission, and the Council of the European Union, according to Investing.com. Once the legislation is finalized, the ECB will be able to make a final decision on the issuance of the digital euro.
According to the current timeline, this could happen in late 2026. The project will then move into a pilot phase, which will run from 2027 to 2028. A public launch of the digital euro is possible in 2029.
The digital euro is being developed as a central bank digital currency for everyday payments. It is expected to complement cash, while digital wallets and user services will be provided by commercial banks and payment service providers. The ECB will remain responsible for issuance and settlement.
To limit the impact on bank deposits, the amount of funds in a single digital wallet is expected to be capped at approximately 3,000 euros. No interest will be paid on these funds, and amounts exceeding the limit can be automatically transferred to a linked bank account.
The draft also includes measures to protect privacy. Online payments must provide a level of data protection comparable to that of existing electronic payments, while offline payments must allow transactions to be conducted without transferring data to payment service providers or the Eurosystem.
It is noted that the project’s objectives go beyond the modernization of payments. According to the bank’s assessment, European authorities view the digital euro as a tool for strengthening strategic autonomy, reducing dependence on foreign payment service providers, and preparing for the growing use of stablecoins and tokenized financial markets.
Economists expect that the introduction of the digital euro will be gradual and will become part of the ECB’s broader strategy to modernize retail, wholesale, and cross-border payments in the eurozone.
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