The European Central Bank is reportedly planning to introduce its digital euro by 2029, contingent on establishing a legal framework.
Officials involved in the central bank digital currency initiative will continue their groundwork following the current preparation phase, which wraps up this month, as reported by Bloomberg on Wednesday, citing informed sources.
ECB officials have been considering the possibility of launching the digital euro since 2020, officially entering the preparation phase in late 2023.
Preparatory discussions are slated for this week in Italy, per Bloomberg’s sources, with hopes that lawmakers will reach an agreement on the legal framework within the next four years.
EU lawmakers still can’t agree whether a CBDC is a good idea
The initiative has encountered considerable skepticism from banks, legislators, member states, and users, primarily due to privacy concerns and other risks.
Legislation has been pending in the European Parliament since 2023, facing delays amid political issues and the upcoming 2024 elections.
In September, ECB Board member Piero Cipolloni indicated that mid-2029 could be a potential launch date, and he anticipated a consensus on the digital euro by May 2026.
Cipolloni stated that a digital euro would guarantee all Europeans access to free, universally accepted digital payment methods, even during significant disruptions such as wars or cyberattacks.
Related: EU exploring Ethereum, Solana for digital euro launch: FT
CBDCs around the world
As of now, only three CBDCs have officially been launched, according to the Atlantic Council.
Their CBDC tracker identifies Nigeria, the Bahamas, and Jamaica as the sole jurisdictions with active digital tokens, while an additional 49 countries are in the pilot phase.
Information compiled by the Human Rights Foundation, which introduced a CBDC tracker in November 2023, highlights enhanced payment efficiency and increased financial inclusion as potential benefits of CBDCs.
However, drawbacks include the currency’s potential to violate privacy and create new pathways for government corruption, among other concerns.
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