European Central Bank to Accelerate CBDC Plans, Eyeing 2029 Digital Euro Rollout

The European Central Bank (ECB) plans to pilot its digital euro in mid-2027, ahead of a continent-wide rollout expected in 2029. The ECB has been urged by the European Council to accelerate the development of this central bank digital currency (CBDC). ECB President Christine Lagarde stated that the digital euro is vital for transitioning cash into a digital format, aiming to reduce dependence on physical currency. The proposal will require regulations from the European Parliament, anticipated to be passed in 2026, to enable initial transactions by 2027. This digital euro is distinct from stablecoins as it will not rely on public blockchain technology and is intended to be a safe, centralized form of currency. Concerns regarding CBDCs, such as privacy, centralization, and the potential for freezing funds, have been raised by crypto enthusiasts. The projected cost for developing the digital euro is approximately €1.3 billion, with annual operating costs following the rollout estimated at €320 million. Other countries are also exploring their own CBDCs, while the U.S. has prohibited the use of a CBDC within its borders, creating a diverse global landscape for digital currencies.

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