The European Central Bank plans a CBDC pilot project from mid-2027, full implementation by 2029, and will soon begin selecting licensed payment providers

14 0

“We want to be ready for a possible first issue of the digital euro in 2029”

Today, the European Central Bank (ECB) presented an updated timetable for the launch of its digital euro, a central bank digital currency (CBDC). The rollout has been delayed because the ECB had originally intended to have its CBDC officially approved by October of last year, but acknowledged that the public was not yet entirely convinced. It announced, however, that it would intensify its public relations efforts to influence some opinions.

Piero Cipollone, a member of the ECB’s Executive Board, presented an updated roadmap for the digital euro at a meeting of the ABI Executive Committee.

According to the ECB documents, “a pilot project and first transactions could be launched in mid-2027”.

In contrast to the United States, the European Union seems determined to pursue the more conventional path of banking, while America is taking the path of privatized stablecoins.

Cipollone said the digital euro would mean “maintaining the central position of banks in payments,” as reported by Reuters. “Banks could lose their role in payments not only because of stablecoins, but also because of other private solutions.”

“The cap on fees that merchants will have to pay in the digital euro network will be lower than the fees of the international payments network, which is usually more expensive, but higher than the fees of the domestic payments system, which is usually the cheapest,” said Cipollone.

Previously, the ECB had worked with MasterCard to develop a digital ID wallet system, but given the tensions with the US and an increasingly fragmented world, this project now appears to have stalled.

The ECB says that the digital euro could be provided via existing media, namely digital ID wallets or co-badging with physical cards.

The ECB aims to have its CBDC officially launched and enshrined in law this year.

According to Cipollene, there are some important parameters that should be considered when introducing a CBDC.

Compensation: For a transitional period of at least five years, fee caps would be set at a level comparable to the average fees for debit card payments used both at the point of sale and for e-commerce. Since payment service providers would not pay system fees for the digital euro, this would result in substantial fee revenues.
Open financing: Banks would not be obliged to offer financing/refinancing services for a digital euro payment account not held with them. Availability would depend on bilateral agreements, which could include compensation.
Cash services: Cash conversion would only be mandatory for payment service providers offering cash services for comparable payment methods, and would only need to be carried out in the same manner as the payment service provider offers them for comparable payment methods. This allows for the collection of a reasonable cash exchange fee and an inter-PSP fee, aligned with current business models.
Multiple accounts and joint accounts: Payment service providers would offer this to consumers on a voluntary basis.
User interfaces: increases the visibility of banks’ interfaces for accessing the digital euro.
Access to mobile devices: introduces stricter regulations for phone manufacturers to grant payment service providers access to the software and hardware in mobile devices for the provision of the (offline) digital euro.

Author’s comment

The introduction of the CBDC took longer than expected, and in my opinion, this is a major reason why stablecoins have become so attractive lately. The incompetent and corrupt ECB continues to vacillate and achieve nothing (which, hopefully, will remain the case, or better yet: how about the ECB, along with the other central banks, simply shut down!)

By 2029, Europe will likely look very different, destroyed and torn apart by war and its doomed economies. By then, perhaps even sooner, people will be begging for a “solution”.

Author: The WinePress

yogaesotetric
February 24, 2026