(When) Will the digital euro be launched?

The introduction of the digital euro is delayed. Now, for the first time, the European Parliament has presented a concrete timeline.

On the journey toward the digital euro, Piero Cipollone and Fernando Navarrete are essentially sitting in the same boat – yet they’re steering in opposite directions. While Cipollone, a member of the European Central Bank (ECB)’s Executive Board, wants to set sail, Navarrete, the European Parliament’s rapporteur, is turning the bow into the wind. Are we still on course?

The reality looks as follows: the actual decision on whether to introduce the digital euro depends on the legislation of the European Union (EU), in which the three institutions — the European Parliament, the European Council, and the European Commission — are involved. Only after the adoption of EU legislation the ECB can decide on the introduction of a digital euro.

The Commission already published a draft law for the digital euro in June 2023. Now, the Parliament and the Council are up. They will comment on the draft law and can submit proposals for amendments. In September, the Council announced that it would publish a coordinated position on the draft law by the end of the year. Thus, the ball is now in the Parliament’s court.

However, the legislative process there is progressing only slowly. Not least, the European elections and the associated reappointments of the bodies have contributed to considerable delays. Last Thursday, rapporteur Navarrete presented for the first time a long-awaited timeline intended to bring clarity: the Committee on Economic and Monetary Affairs (ECON) of the Parliament is expected to draw up and vote on its position by the second quarter of 2026.

However, it is unlikely that the final legislative act will follow immediately afterwards. Usually, the positions of the three institutions are not identical — further negotiations follow in the so-called trilogue. This is particularly likely for a polarizing project such as the digital euro. In addition to technical topics, such as the maximum number of accounts, fundamental questions like the added value of a digital euro could also become points of contention. How far apart the positions of the Commission, Council, and Parliament are, and how long it will take to agree on a final legal text, remains open.

What is certain is that the ECB’s original schedule cannot be maintained. In Frankfurt, there had been hopes that the legislative process would already be completed by October 2025. It now seems that at least a one-year delay is to be expected. According to the ECB, after the adoption of the final legislative text it would still take another two to two and a half years before the digital euro could be introduced. Among other things, the rulebook must be finalized and the technical components — also for an offline solution — must be developed.

The current situation does, however, allow for a positive view: although the project is delayed, at least the anchor seems to have been lifted and the boat is moving forward. The course is set for the introduction of the digital euro. However, arrival in the target harbor is not to be expected before early 2029.

This article was originally published in Frankfurter Allgemeine Zeitung (FAZ) in German. For the original version, click here. The original English article was published here.

Disclaimer: The contents of this article reflect the personal opinion of the authors.