ECB prepares first digital euro issuance in 2029

The European Central Bank (ECB) is preparing the first issuance of the digital euro in 2029, as soon as the necessary legislation is adopted. If European lawmakers adopt the regulation on the introduction of the digital euro in 2026, the ECB could conduct a pilot exercise and initial operations from mid-2027.

The ECB and national central banks should be prepared "for a possible first issuance of the digital euro in 2029," reveals the monetary institution, considering that "the need for a public digital payment method to complement cash is becoming increasingly urgent" as the number of cash payments decreases.

It is estimated that the total development costs, including components produced both externally and internally, will amount to €1.3 billion by the first issue in 2029. The ECB anticipates that, from 2029 onwards, annual operating costs will be approximately €320 million.

The ECB and national central banks have assumed these costs, as they already do with the costs of producing and issuing euro banknotes, which, like the digital euro, are a public good.

As with banknotes, the ECB expects these costs to be offset by the gains generated, even if holdings of digital euros were small compared to banknotes in circulation.