Market News

FLORENCE, Italy, Oct 30 (Reuters) - The European Central Bank said on Thursday it could launch a pilot of its digital currency in 2027 provided it can secure timely approval from lawmakers for a project it deems vital for the euro zone's financial autonomy.

The ECB has presented it as a strategic alternative to private, U.S.-dominated means of payment such as credit cards and stablecoins — a move it says is increasingly important in an era of heightened geopolitical friction, where financial autonomy and resilience are seen as key to safeguarding Europe's economic sovereignty.

After four years of study and preparation, the ECB said it was now looking at carrying out a pilot, meaning some transactions in digital euros may be carried out as soon as mid-2027, before a full-scale launch two years later.

"A pilot exercise and initial transactions could take place as of mid-2027," the ECB said in a statement. "The whole Eurosystem should then be ready for a potential first issuance of the digital euro during 2029."
But this was conditional on European Union lawmakers – who include the European Parliament, Council and Commission – passing legislation providing a basis for the digital euro next year.