ECB warns delays could postpone digital euro launch

The European Central Bank has warned that delayed EU legislation could postpone the digital euro’s introduction and weaken Europe’s payment independence.

The warning came as the ECB urged lawmakers to complete the Single Currency Package by the end of 2026.

“A delay in adoption could instead postpone the introduction of the digital euro, further entrench Europe’s dependence on foreign providers, and make it more difficult for European companies to innovate and compete,” ECB Executive Board member Piero Cipollone said in a statement.

The legislation would provide the legal certainty needed to finalise the digital euro’s design and establish a possible first issuance date.

The ECB plans to begin a digital euro pilot in the second half of 2027, testing payment functionality and user experience.

The pilot will involve 36 selected payment service providers, including banks and non-bank companies, alongside participating merchants and Eurosystem staff.

The ECB also launched Pontes in September, connecting distributed ledger technology platforms with Eurosystem payment infrastructure and supporting tokenised transactions in central bank money.

The initiative places the digital euro at the centre of Europe’s efforts to strengthen payment independence while maintaining access to cash.