European Central Bank advances digital euro and digital payments strategy

The European Central Bank (ECB) is actively developing the digital euro as part of its comprehensive payments strategy. The project aims to support an integrated, innovative, and competitive European market for digital payments and finance.

The strategy includes advancing technical readiness, market engagement, and legislative support, with a pilot scheduled to run for 12 months starting in the second half of 2027. The ECB aims to be ready for potential issuance in 2029, contingent on legislative approval.

The digital euro will serve as a digital form of cash for day-to-day payments, available across the euro area both online and offline. It will be distributed through EU-licensed payment service providers, with banks playing a key role in distribution and safeguarding customer relationships.

The strategy also emphasizes the development of a European acceptance infrastructure, supporting private innovation and interoperability across domestic and regional solutions. The ECB is exploring tokenised central bank money, with initiatives like Pontes & Appia supporting secure settlement and market integration.

Additionally, the ECB is engaged in improving cross-border payments through interlinking systems and participating in global projects such as Project Agorá, led by the Bank for International Settlements (BIS). The focus remains on fostering a resilient, efficient, and integrated digital payments ecosystem within Europe and beyond.

More information, FAQs, and updates are available on the ECB’s dedicated webpage for the digital euro and related initiatives.