Digital Euro: Confirmation of Possible First Issuance in 2029

The European Central Bank (ECB) has officially presented the defense of Europe’s monetary sovereignty through the digital euro and tokenized payment infrastructure as part of its agenda. It has been confirmed that if relevant regulations are adopted by the end of 2026, the first issuance of the digital euro could occur in 2029 after a pilot program in 2027. Commissioner Piero Cipollone defined monetary sovereignty as control over the issuance and value of central bank money, explaining that central bank money serves as the benchmark for the financial system. The ECB stated that the euro is the second most important currency in the international monetary system, with 82% of eurozone residents trusting the euro. However, it pointed out a significant reliance on non-European payment networks for digital retail payments. The timeline for the digital euro is contingent upon legislation, and the European Parliament approved the start of negotiations on the digital euro regulation in July. In wholesale payments, Pontes and Apia are key players, with Pontes working on a project that connects a DLT-based market platform for payments using central bank money. The ECB plans to launch the quantum link between TIPS and India’s UPI in 2027, with Norway expected to join in 2028. Policies related to the digital euro focus on redefining the relationship between payment infrastructure, stablecoins, and central bank money.