ECB Warns of Possible Delay in Launching Digital Euro

The European Central Bank (ECB) may delay the potential launch of the digital euro if European Union lawmakers fail to timely agree on the necessary regulatory framework. This was stated by ECB Executive Board member Piero Cipollone on November 10, 2026, during a meeting of the European Parliament's Committee on Economic and Monetary Affairs. He urged negotiators to finalize the legislation by the end of the year to maintain the current project preparation schedule. Under this scenario, the ECB aims to ensure technical readiness for a possible first issuance of the digital euro in 2029.

“A delay in adoption could instead postpone the introduction of the digital euro,” Cipollone stated in a speech published on the ECB's website. According to him, further delays in negotiations could increase the dependence of European payment systems on foreign service providers and complicate competition for local companies. The adoption of the regulatory framework should provide the ECB with the legal certainty necessary to complete technical and organizational preparations.

The European Parliament has already agreed on its position on the digital euro

The legislative initiative is part of the EU's single currency package, which provides for the creation of a legal framework for the digital euro and the regulation of the status of cash. In June 2026, the European Parliament's Committee on Economic and Monetary Affairs supported the digital currency bill with 43 votes in favor, 14 against, and one abstention. On July 9, the European Parliament approved its negotiating position, after which work continued in coordination with representatives of EU member states.

Despite the progress in the legislative process, the final decision on the issuance of the digital euro has not yet been made. After the necessary rules are approved, the ECB's Governing Council must separately determine whether to issue the digital currency and when this might occur. Thus, 2029 remains a target for technical readiness rather than a guaranteed start date for the digital euro's circulation.

Testing of the digital euro is planned for 2027

In parallel with legislative negotiations, the ECB is preparing to conduct a 12-month pilot project, which is set to begin in the second half of 2027. Thirty-six payment service providers, including banks and non-bank organizations, have already been selected to participate. ECB staff, 19 national central banks, and selected retail enterprises will also be involved in testing. Participants will assess the payment infrastructure's performance in everyday scenarios, including in-store purchases and transfers between users.

During the pilot project, a preliminary version of the digital euro will be used, which will not have the status of legal tender. The testing will evaluate the infrastructure's reliability, payment convenience, and the system's ability to handle various loads. The ECB intends to use the results obtained to further prepare for the possible issuance of the digital currency, which is meant to complement cash euros rather than replace them.

Cipollone's warning came amid the upcoming change in ECB leadership. On October 29, ECB President Christine Lagarde announced that she would step down on February 7, 2027, before the planned pilot begins. The procedure for appointing her successor is already underway, but this does not change the current conditions for the digital euro's issuance: a final decision is only possible after the necessary legislation is adopted.