The European Central Bank (ECB) today confirmed that it is preparing for a possible launch of the digital euro in 2029. In an official statement, the central bank explains that legislation must first be adopted. The deadline for this is 2026.
Legal framework and privacy central
The ECB emphasizes in the press release that the digital euro is a supplement to existing payment methods. It is not a substitute for cash. The central bank also states that the design of the digital euro aims to ensure privacy and user freedom: “The ECB will not have access to users’ personal data,” the press release said. This point is relevant. There have been concerns within Europe for years about possible government control via digital money.
A legal framework is needed to make the issuance of a digital euro possible. The European Commission has already submitted a bill for this. Its approval by the regulatory authorities is expected in 2026. Only then can the ECB formally decide to issue, which could take place in 2029.
The digital euro would be distributed by commercial banks and could be used for everyday payments, both online and offline.
Difference with euro stablecoins
The digital euro is an official digital currency of the ECB and therefore fundamentally different from so-called euro stablecoins. The ECB’s digital euro is therefore a central bank digital currency (CBDC).
Stablecoins based on the euro, such as the project that ING and other European banks are working on, are private initiatives. They link crypto currencies to the value of the euro. These initiatives are not guaranteed by a central bank. They fall under a different regulatory framework.
The ECB emphasizes that the public nature of the digital euro is necessary. This is to ensure trust, stability and inclusion in the digital payment system. The project fits within the EU’s broader strategy to strengthen Europe’s digital sovereignty.
Source: https://newsbit.nl/ecb-bevestigt-mogelijke-invoering-digitale-euro-in-2029/
