ECB Eyes Digital Euro Pilot by Mid‑2027

The European Central Bank completed a two‑year preparatory phase and is moving to technical readiness and pilot planning, with a pilot possibly in mid‑2027 and potential first issuance targeted for 2029 if EU lawmakers approve a legal framework expected in 2026. The digital euro is being designed as “digital cash” to complement—not replace—banknotes, preserve citizens’ freedom of choice and privacy, strengthen Europe’s monetary sovereignty, and reduce reliance on U.S.‑dominated private payment systems. Preparatory work has produced a rulebook, selected providers for a digital‑euro service platform, and extensive user research. The ECB estimates development costs of about €1.3 billion to first issuance and roughly €320 million in annual operating costs, though some industry estimates put wider costs at €4–5.8 billion. ECB simulations warn that high holding limits could shift as much as €700 billion from bank deposits into digital wallets, fuelling bank scepticism, and the EU timeline hinges on resolving political, legislative and technical challenges; globally only three jurisdictions have launched retail CBDCs while about 49 countries are in pilot stages.