The digital euro: preparing for a potential launch

In an address to the Committee on Economic and Monetary Affairs of the European Parliament, Piero Cipollone, Member of the Executive Board of the ECB, provided an update on the digital euro initiative.

He highlighted that the euro area leaders reaffirmed the importance of advancing this project, which aims to strengthen EU monetary sovereignty, reduce retail payment fragmentation, and support the Single Market.

The Eurosystem is continuing technical preparations to ensure readiness for a digital euro that functions across the euro area and complies with legislation. The issuance will only occur once the legal framework is in place.

Additionally, the Eurosystem plans to launch Pontes, a DLT solution for central bank money settlement, in Q3 2026, and has published a roadmap for Appia, an initiative to develop an integrated European digital assets market.

The update covers four key areas: inclusion and accessibility, innovation, integration into the European payments ecosystem, and piloting activities.

Inclusion and accessibility by design

The digital euro aims to be accessible to all, including people with disabilities and those facing digital financial exclusion. The ECB has conducted research and signed a collaboration agreement with the ONCE Foundation to incorporate accessibility features such as voice commands, large fonts, and simplified workflows into the digital euro app.

This approach ensures the digital euro meets and exceeds the requirements of the European Accessibility Act, aiming for broad inclusion.

Innovation

The ECB is partnering with the private sector to foster innovation, addressing challenges of scaling and fragmentation. A 2024 initiative involved around 70 market participants exploring how the digital euro can support new business models and enhance payment services.

Workstreams include experimentation—developing features like conditional payments, offline functionality, and value-added services—and exploration of future technological developments such as AI and micropayments.

Fitting into the payments ecosystem

The ECB is engaging with industry to integrate the digital euro with domestic European payment schemes through co-badging and establishing common standards. This aims to support private sector innovation and reduce dependence on international card schemes.

The development of a digital euro rulebook and standards is underway, with an announcement expected by summer 2026, contingent on legislation adoption.

Digital euro piloting

The ECB has launched a pilot program to test the infrastructure in real-life conditions, involving selected payment service providers (PSPs). Applications are evaluated, with selected PSPs expected to start development in Q3 2026 and the pilot running for 12 months in the second half of 2027.

This activity prepares for potential issuance around 2029, assuming the legislative process proceeds as planned. All market participants will have access to technical documentation and updates via a dedicated webpage.

The ECB emphasizes that a clear legal framework is essential for completing preparations and providing certainty to market participants. The ECB looks forward to the European Parliament’s position on this matter.

Further updates will be provided as the project progresses.