This Thursday, the 30th, the European Commissioner for the Economy welcomed the decision of the European Central Bank (ECB) to advance to the next phase of the digital euro with a view to a first issuance of this virtual currency in 2029, speaking of a “strategic opportunity”.
“I welcome the decision of the Governing Council to move forward with the next phase of the digital euro”, reacted the European Commissioner for Economy, Valdis Dombrovskis, in a post on the social network X.
The European head of supervision recalled what was agreed last Thursday by European Union leaders, when they argued that “the digital euro offers a strategic opportunity to support a competitive and resilient European payments system”.
The ECB announced today that it is preparing the first issuance of the digital euro in 2029, as soon as the necessary legislation for this purpose is adopted.
Meeting in the Italian city of Florence to decide on interest rates, the central bank explained that “the Governing Council’s final decision on whether or not a digital euro will be issued, and on what date, will be taken after the legislation has been adopted.”
If European lawmakers adopt the regulation on the introduction of the digital euro in 2026, the ECB could carry out a pilot exercise and initial operations from mid-2027.
The ECB and national central banks must be prepared “for a possible first issuance of the digital euro in 2029”, added the monetary institution.
According to the central bank of the single currency, “the need for a public digital payment method as a complement to cash is increasingly urgent” as the number of cash payments declines.
It is estimated that total development costs, including components produced both externally and internally, will amount to 1,300 million euros by the first issuance in 2029.
The ECB predicts that, from 2029, annual operating costs will be approximately 320 million euros.
This and the national central banks would assume these costs, as they already do with those of producing and issuing euro banknotes which, like the digital euro, are a public good.
The digital euro will complement physical cash and offer advantages such as simplicity, privacy, reliability and availability across the eurozone.
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