European Central Bank official: The digital euro is a matter of payment sovereignty, and could be launched as early as 2029.

ECB Executive Board member Piero Cipollone stated in an interview that the digital euro, set to launch a pilot program next year, is expected to grant the EU "sovereignty" over its payment infrastructure and reduce dependence on third parties outside Europe. He pointed out that in recent years, Europe has come to recognize that critical services such as energy and defense cannot rely solely on external sources, and the same holds true for payments. Cipollone emphasized that sovereignty does not mean excluding third parties, but rather retaining the option to ensure that this critical service—payments—can also rely on Europe’s own capabilities. The pilot will involve real transactions conducted by staff from the ECB and national central banks. Currently, 36 market institutions are participating in preparations, and e-commerce and mobile commerce operators have also been invited to join. According to the plan, if relevant legislation is passed this year, the ECB Governing Council can make a formal decision on issuance, with real transaction tests expected to take place in 2027, and the digital euro could be rolled out as early as 2029. Cipollone also noted earlier that non-European companies dominate roughly two-thirds of card transactions in the euro area, and the digital euro is expected to cut this reliance.