The European Central Bank is reportedly aiming to introduce a digital euro in 2029, once a legal framework can be established.
Officials working on a central bank digital currency plan to continue laying the groundwork after the current preliminary phase ends this month, Bloomberg reported Wednesday, citing people familiar with the matter.
ECB officials have been exploring the possibility of introducing a digital euro since 2020, with preparations starting in late 2023 as part of the plan.
Preparatory work is expected to continue at a meeting in Italy this week, with the hope that a legal framework can be agreed by lawmakers and passed within the next four years, Bloomberg’s sources said.
EU lawmakers still can’t agree on whether CBDC is a good idea
The project has faced significant skepticism from banks, lawmakers, member states, and end users, primarily due to concerns about privacy and other risks.
The bill has been in the European Parliament since 2023, but has faced delays due to political concerns and the impact of the 2024 elections.
In September, ECB board member Piero Cipolloni predicted that the European Parliament would likely reach an agreement on a digital euro by May 2026, suggesting its launch could take place in mid-2029.
Cipolloni said a digital euro would ensure that all Europeans have access to free and widely accepted digital payment methods, even in the event of a major disruption such as war or a cyber attack.
Related: EU considers Ethereum, Solana for launch of digital euro: FT
CBDC around the world
According to the American think tank Atlantic Council, only three CBDCs have been officially launched.
Its CBDC tracker lists Nigeria, Bahamas, and Jamaica as the only three jurisdictions with active digital tokens. At the same time, another 49 countries are in the pilot phase.
Information compiled by the Human Rights Foundation, which launched a CBDC tracker in November 2023, cites improved payment efficiency and greater financial inclusion as potential benefits of CBDC.
Drawbacks include the currency’s potential to invade privacy and open new avenues for government corruption.
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