The digital euro is subject to approval by EU lawmakers
Brussels, 31 October / WAM / The European Central Bank announced its plan to launch a pilot project for a digital euro in 2027, after the successful completion of the preparatory phase.
However, the bank stressed that the implementation of the project is conditional on obtaining the approval of European Union legislators, as the European Parliament, the Council and the European Commission must adopt legislation that determines the legal framework necessary to issue the digital euro.
The European Central Bank’s Governing Council explained that the final decision on issuing the digital euro and setting its date will not be taken until these laws are passed.
If the regulation for the digital euro is adopted during 2026, the pilot project, which will include limited transactions, may begin in mid-2027, with the European financial system being prepared for a possible initial issuance of the digital currency by 2029.
The digital euro aims to be a complement to paper money, not a substitute for it, so that it will be adopted as an accepted means of payment in all eurozone stores, with a special application provided by the European Central Bank to facilitate its use and access by individuals and companies.
This initiative seeks to enhance Europe’s financial independence and reduce its dependence on American payment service providers such as PayPal, Apple Pay, MasterCard, and Visa, and comes in response to the continuing decline in the use of paper cash.
European Central Bank President Christine Lagarde stressed that the euro represents a symbol of European unity and that the bank is committed to ensuring the sustainability of its position in light of the global digital transformation, stressing the importance of modernizing current banknotes and preparing to launch the European digital currency as part of a broader vision to modernize the European financial system and enhance its monetary sovereignty.
Pro/Z/WAM
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