European Central Bank Pushes for CBDC Launch in 2029 Amid Unresolved Legal Framework

TLDR

• ECB began digital euro prep in 2023 and targets full launch by 2029.
• EU lawmakers have not yet agreed on a legal framework for the euro CBDC.
• Only Nigeria, the Bahamas, and Jamaica have launched CBDCs so far.
• ECB aims to reduce EU reliance on US payment giants like Visa and PayPal.

The European Central Bank is moving forward with its digital euro plans, targeting a launch date of 2029. However, key decisions remain pending as lawmakers and officials continue to debate the legal and political groundwork needed to make the project viable across the Eurozone. With concerns about privacy, competition, and dependency on non-European payment systems, the ECB is accelerating its efforts despite ongoing political disagreements.

Legal Framework Still Pending as ECB Concludes Preparation Phase

The European Central Bank (ECB) is expected to conclude its current preparation phase for the digital euro at the end of October 2025. According to sources cited by Bloomberg, officials will meet this week in Florence, Italy, to decide on the next steps.

Preparatory work for the digital euro started in late 2023, following earlier studies that began in 2020. ECB Board Member Piero Cipollone recently stated that mid-2029 is a likely launch window if legal approval is secured by 2026. Cipollone explained that a digital euro would give Europeans access to a stable digital payment method, especially in times of crisis such as war or cyberattacks.

Lawmakers Still Divided on Digital Euro Adoption

Despite progress in technical planning, the digital euro still faces political resistance. Legislation has been under review in the European Parliament since 2023 but has seen delays, particularly around the 2024 elections.

Many lawmakers, member states, banks, and consumers have raised concerns about privacy and digital surveillance. The lack of agreement has slowed down formal approval. ECB officials hope lawmakers will finalize the legal framework within the next four years.

Last month, finance ministers from EU member states agreed on a roadmap for the digital euro, including setting limits on individual holdings. Cipollone called this agreement a “breakthrough,” as it addresses one of the key concerns surrounding the project.

Digital Currency Seen as Counter to Foreign Payment Dependence

Policymakers are increasingly worried about Europe’s reliance on foreign payment firms such as Mastercard, Visa, and PayPal. The ECB’s digital euro aims to reduce this dependency by providing a public digital alternative that is accessible to all EU residents.

Officials are also watching the rise of dollar-backed stablecoins, which some fear could weaken the Eurozone’s monetary sovereignty. The digital euro is being seen as one way to push back against the growing influence of private and foreign-controlled payment networks.

Some countries in the Eurozone are also pushing for faster adoption to catch up with global developments. However, without a legal mandate from the European Parliament, the ECB cannot move forward with full-scale implementation.

Global CBDC Development Still Limited, But Growing

According to the Atlantic Council, only three countries have fully launched central bank digital currencies: Nigeria, Jamaica, and the Bahamas. An additional 49 countries are currently in the pilot phase.

The Human Rights Foundation also tracks CBDC development and notes that digital currencies can improve payment systems and promote financial access. Still, critics warn that these currencies could reduce privacy and increase government oversight of personal finances.

The United States remains cautious in its approach. The Federal Reserve has not committed to a retail CBDC, citing the need for political backing and legislative approval. Instead, the U.S. has focused on regulating stablecoins, especially since the introduction of the GENIUS Act in July 2025.

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