Digital euro likely to be rolled out in mid-2029: ECB's Piero Cipollone

Synopsis

The digital euro project is gaining momentum, potentially launching in mid-2029, according to ECB's Piero Cipollone. Euro-area finance ministers have reached an agreement on customer holding limits, marking a significant step forward. Discussions among member states are progressing positively, suggesting a concrete timeline for the digital currency's introduction.

The digital euro could become a reality in 2029 as efforts intensify to get the long-running project off the ground, according to European Central Bank Executive Board member Piero Cipollone.

The Italian official touted a "major breakthrough" last week as euro-area finance chiefs reached an accord on how to set customer holding limits, adding that he now sees momentum.

"The discussion at the level of member-states is going very well," Cipollone told a Bloomberg Future of Finance event Tuesday in Frankfurt. Discussing a potential launch date, he said "the middle of 2029 could be a fair assessment."

The ECB has been pushing for a digital euro for years in a bid to reduce the region’s reliance on firms like Visa and PayPal for retail payments. Fears that dollar-backed stablecoins championed by Donald Trump could gain a foothold in Europe are adding new impetus.

The biggest holdup is the European Parliament, which must pass legislation to underpin the initiative. Following an Oct. 24 progress report, lawmakers will have six weeks to put forward amendments and a further five months for discussions, Cipollone said.

That means it’s possible that by beginning of May, “we should have a position also of the parliament,” he said.

“We should arrive at a general approach, as they call it, an agreement among member-states by the end of the year,” Cipollone said.

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