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

The European Central Bank (ECB) is set to accelerate its development of the digital euro, with plans to pilot the central bank digital currency (CBDC) in mid-2027, leading to a full rollout across Europe by 2029. This initiative follows a directive from the European Council urging swifter action. ECB President Christine Lagarde emphasized the digital euro's significance in digitizing cash and reducing reliance on physical notes, referring to it as a symbol of trust in the euro. The digital euro will not utilize public blockchains, but will adopt key design principles associated with digital ledger technology. Concerns about privacy and centralization remain prominent among crypto enthusiasts, who worry about the potential for fund freezing by central banks. The development costs for the digital euro are projected at €1.3 billion (~$1.5 billion) until its first issuance, with estimated ongoing annual operating costs of €320 million (~$369 million). This move highlights not only ongoing efforts in Europe but also the global trend towards CBDCs, with several nations exploring or implementing their own versions.

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