The European Central Bank has suggested that a digital euro could realistically be introduced in 2029, though the project still depends on political consensus and technical progress.
According to Cryptonews, the initiative, which has been under discussion for several years, is intended to support Europe’s payment infrastructure and reduce dependence on private providers such as Visa and PayPal. ECB officials have also noted that the project could limit the growing influence of dollar-backed stablecoins in everyday transactions across the region.
Legislative issues and technical choices
The timeline relies largely on legislation. Following a progress report, members of the European Parliament are expected to spend six weeks drafting amendments, with negotiations extending for several months afterwards. If that schedule holds, a parliamentary position could emerge by early May. In parallel, EU member states are seeking a common framework, with an agreement anticipated before the end of this year.
Recent talks among finance ministers marked a shift, as governments agreed on rules for setting limits on customer holdings. According to an ECB representative, this was an important step in balancing accessibility while maintaining stability in bank deposits.
While legal groundwork moves forward, design decisions remain unsettled. Reports suggest that policymakers are assessing whether to base the digital euro on public blockchains such as Ethereum or Solana, diverging from earlier plans for a system operated solely by the Eurosystem. Supporters of an open ledger argue that it could expand usability, while critics warn of risks to privacy and transaction security.
Beyond technology, questions persist about how a digital euro would coexist with commercial banks and private payment tools, as well as whether it could compete effectively with existing stablecoins without disrupting markets. Even if political agreement is achieved, the ECB has emphasised that any launch will depend on adequate safeguards to protect both consumers and financial stability.
