The European Central Bank is reportedly aiming to launch its digital euro in 2029, provided a legal framework can be hammered out.
Officials working on the central bank digital currency will continue to lay the groundwork after the current preparation phase concludes this month, Bloomberg reported on Wednesday, citing people familiar with the matter.
ECB officials have been exploring a potential rollout of the digital euro since 2020, entering the preparation phase in late 2023 as part of their plans.
Preparatory work is expected to continue at a meeting this week in Italy, according to Bloomberg’s sources, in the hope that a legal framework will be agreed upon by lawmakers and passed within the next four years.
EU lawmakers still can’t agree whether a CBDC is a good idea
The project has faced significant skepticism from banks, lawmakers, member states and end-users, mainly due to concerns around privacy and other risks.
Legislation has been before the European Parliament since 2023, and has faced delays amid political concerns and the 2024 elections.
In September, ECB Board member Piero Cipolloni flagged the middle of 2029 as a possible launch date and predicted that the European Parliament would likely come to a consensus on a digital euro by May 2026.
Cipolloni said a digital euro would ensure all Europeans have access to free, universally accepted digital means of payment, even in the event of major disruptions such as war or cyberattacks.
Related: EU exploring Ethereum, Solana for digital euro launch: FT
CBDCs around the world
Only three CBDCs have officially launched, according to the American think tank, the Atlantic Council.
Its CBDC tracker lists Nigeria, the Bahamas and Jamaica as the only three jurisdictions with an active digital token. At the same time, there are another 49 countries in the pilot phase.
Information compiled by the Human Rights Foundation, which unveiled a CBDC tracker in November 2023, cites improved payment efficiency and expanded financial inclusion as potential benefits of CBDCs.
Drawbacks are listed as the currency’s potential to infringe on privacy and open up new avenues of government corruption, among other concerns.
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