The European Central Bank (ECB) plans to introduce the digital euro to the market in 2029. Provided that a legal framework can be developed by then.
The European Central Bank will issue CBDC in 2029.
As he announced on Wednesday Bloombergciting people familiar with the matter, ECB officials are analyzing the possibility of introducing a digital euro to the market. Preparatory work will continue at a meeting later this week in Italy. Bankers assume that lawmakers will agree and adopt a legal framework for CBDC within the next four years. If this is successful, the digital euro will appear on the market in 2029.
However, the project has so far met with considerable skepticism from commercial banks, legislators, Member States and end-users. Mainly due to privacy concerns.
The legislative project regarding CBDC has been considered in the European Parliament since 2023.
In September, ECB board member Piero Cipolloni pointed to mid-2029 as a possible launch date for the digital currency and predicted that the European Parliament would likely reach a consensus on a digital euro by May 2026. He declared that the digital euro would provide all Europeans with access to free, universally accepted digital means of payment, even in the event of major disruptions such as war or cyberattacks.
Which countries have CBDCs?
According to the US think tank Atlantic Council, only three CBDCs have been officially launched. These are the digital currencies of Nigeria, the Bahamas and Jamaica. At the same time, tests and pilot phases are underway in 49 countries. The Chinese yuan is being tested, among others, by: China.
Information gathered by the Human Rights Foundation, which unveiled its CBDC tracker in November 2023, points to improved payment efficiency and greater financial inclusion as potential benefits of CBDC. However, experts still point to potential violations of consumer privacy – this is the main obstacle to the adoption of central bank digital currencies. Citizens are simply afraid that CBDCs will be used to track their spending and will have an expiration date.
