(Oct 29): The European Central Bank will continue laying the groundwork for the digital euro after the current preparation phase ends this month, pencilling in a launch in four years’ time.
Officials will decide to push on with preparatory work at a meeting this week in Florence, Italy, according to people familiar with the matter. They’re looking to issue the currency in 2029, provided there’s a legal framework, the people said, asking not to be identified citing confidential discussions.
Central bankers began the project’s two-year preparation phase in 2023, hoping the European Union would in the meantime pass the rules needed to roll out the digital counterpart to banknotes and coins. But national governments and the European Parliament still can’t agree.
The biggest roadblock comes from the European People’s Party, where some lawmakers have preferred to seek a private-sector alternative to the ECB’s digital solution. Pressure is building to end the impasse, however, as policymakers bemoan an over-dependence on US firms like Visa, Mastercard and PayPal for retail payments.
Fears that dollar-backed stablecoins championed by US President Donald Trump could gain a foothold in Europe have added new impetus to the debate.
ECB president Christine Lagarde and others are urging faster progress to strengthen strategic autonomy in times of heightened geopolitical tensions. This will also be reflected in Thursday’s communication, the people said.
See also: Nvidia forges AI deals with South Korea’s biggest companies
An ECB spokesperson declined to comment.
The potential launch date was first floated publicly by ECB Executive Board member Piero Cipollone, who told a Bloomberg event in September that “the middle of 2029 could be a fair assessment.” The current preparation phase followed a two-year investigation period.
The ECB has also intensified work on a wholesale central-bank digital currency. In July, it approved a plan that should enable settling distributed-ledger-technology — or DLT — transactions using central-bank money.
Uploaded by Magessan Varatharaja
