Europe’s digital euro may not be ready for current or medium -term current use, according to Piero Cipollone, member of the ECB. Despite recent progress in political discussions and negotiations, Cipollone noted that the middle of 2029 remains the most realistic period for a launch, because key technical decisions are still pending.
In short
- Cipollone of the ECB indicates in mid-2029 as the most realistic launch date for the digital euro project.
- The legislative approval of the European Parliament remains the main obstacle to advancement.
- EU member states are targeting a general digital euro agreement by the end of the year.
- The technical debates continue, with options ranging from private registers to public blockchains.
Improbable digital euro before 2029 despite recent progress
During the event Future of Finance From Bloomberg on Tuesday, Cipollone said that the initiative had made a major advance last week after European finance officials established a framework for use, control and security.
Despite this recent progress, the BCE board member insisted that “the middle of 2029” remains the most likely calendar for a launch. He added that the ECB is in active discussions with all levels of EU member countries concerning the project.
If Cipollone's evaluation is confirmed, this period would constitute a new setback for the project, launched in 2020, aimed at strengthening the financial domination of Europe in the face of the push of American stablecoins.
Parliamentary approval considered key to progress
Cipollone explained that the European Parliament remains the main obstacle to a potential launch of the digital euro, since it has not yet given its legislative agreement.
He said that EU member states are expected to reach a general agreement by the end of this year. According to him, parliament should adopt a formal position on the digital euro by May 2026.
We should reach a general approach, as they call it, an agreement between the member states by the end of the year.
Pine cipollone
The Irish Finance Minister and President of the Eurogroup, Paschal Donohoe, said last Friday that this agreement allows the EU ministers to discuss the digital euro to the Council of Ministers before the ECB made a final decision on its program.
Even though Cipollone evokes mid-2010 as possible launch date, the European authorities are already preparing the land for the preparations for the CBDC. The ECB has scheduled a meeting next month to discuss the next steps, a European deputy having to present a progress report on October 24.
Cipollone added that after the publication of the report, the members of the Parliament will have six weeks to offer adjustments, followed by an additional five months for deliberations.
Questions remain on the design and implementation
Beyond the legislative impasse, the digital euro faces important technical questions. According to reports, officials have planned to launch the project on a public blockchain, such as Ethereum or Solana, after having initially planned to build it on a private register of the European central banks system.
Supporters argue that building on an open network would encourage generalized adoption, while criticisms underline concerns about confidentiality. Defenders believe that a digital euro could strengthen retail payments by reducing costs and increasing transparency. However, others remain skeptical about the privacy of users and the way in which the proposed digital currency would coexist with the banks and assets indexed on the fiduciary currency.
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