According to Cointelegraph, the European Central Bank (ECB) is setting its sights on launching a digital euro by 2029, contingent upon the establishment of a legal framework. This initiative follows a preparation phase that began in late 2023, with ECB officials continuing to lay the groundwork for the central bank digital currency (CBDC). The ongoing efforts are expected to be discussed further at a meeting in Italy this week, with hopes that lawmakers will agree on and pass the necessary legislation within the next four years.
The digital euro project has encountered skepticism from various stakeholders, including banks, lawmakers, member states, and end-users, primarily due to concerns over privacy and other potential risks. Since 2023, legislation regarding the digital euro has been under consideration by the European Parliament, facing delays due to political concerns and the 2024 elections. ECB Board member Piero Cipolloni has indicated that the middle of 2029 could be a feasible launch date, predicting that the European Parliament might reach a consensus on the digital euro by May 2026. Cipolloni emphasized that a digital euro would ensure all Europeans have access to free, universally accepted digital payment methods, even during significant disruptions such as wars or cyberattacks.
Globally, only three central bank digital currencies have been officially launched, according to the Atlantic Council, an American think tank. Their CBDC tracker identifies Nigeria, the Bahamas, and Jamaica as the only jurisdictions with active digital tokens, while 49 other countries are in the pilot phase. The Human Rights Foundation, which introduced a CBDC tracker in November 2023, highlights potential benefits of CBDCs, such as improved payment efficiency and enhanced financial inclusion. However, it also notes drawbacks, including the potential for privacy infringement and increased opportunities for government corruption. As the ECB continues its efforts, the global landscape of CBDCs remains a dynamic and evolving field.