The European Central Bank (ECB) is reportedly focusing on debuting its digital euro by 2029, contingent on the establishment of a legal framework. This information comes from Bloomberg, which cites insiders aware of the developments.

The preparation for this central bank digital currency (CBDC) continues as officials work towards a rollout, following the conclusion of the current preparation phase this month. A meeting in Italy this week is expected to advance discussions aimed at finalizing the legal structure over the next four years.

Ongoing Debate Among EU Lawmakers

The initiative has garnered skepticism from various stakeholders including banks and lawmakers, particularly over privacy issues. Despite legislation being introduced in the European Parliament since 2023, it has encountered delays, especially with the 2024 elections looming.

In September, ECB Board member Piero Cipollone highlighted mid-2029 as a target for the launch while projecting that a consensus on the digital euro could be reached by May 2026. He stressed that a digital euro would provide all Europeans with access to universally accepted digital payment methods, crucial during crises.

Related: EU explores Ethereum, Solana for digital euro launch

Global Perspective on CBDCs

Currently, only three jurisdictions—Nigeria, the Bahamas, and Jamaica—have successfully launched CBDCs, according to the Atlantic Council. Additionally, 49 other nations are in various stages of piloting their own digital currencies.

Research from the Human Rights Foundation points to benefits such as enhanced payment efficiency and broadened financial inclusion as potential advantages of CBDCs, while also cautioning against risks related to privacy and government oversight.

Only three jurisdictions have launched a CBDC, but many others are exploring the option. Source: The Atlantic Council