Overview
- After entering a formal project phase in November, the ECB plans a pilot with selected payment providers and merchants in 2027 and a potential introduction in 2029, both contingent on EU regulation.
- EU leaders, the European Commission and the Council back a retail digital euro as a complement to cash, while banks’ concerns are being handled through ongoing dialogue.
- Users would access the currency through bank-integrated apps or a Eurosystem app, with phone‑to‑phone offline payments and a card option for people without smartphones.
- The ECB says it would not see payer or payee identities, and anti‑money‑laundering and other compliance checks would remain with banks and payment service providers.
- Consumers would pay no fees, merchant charges are expected to be lower than many existing methods, development costs fall to the Eurosystem at under €4 per euro‑area resident to 2029, and the legislative proposal bans interest on holdings.