ECB pushes again for digital euro, EU lawmakers express skepticism

PANews reported on September 5th that according to Cointelegraph, the European Central Bank (ECB) has once again pushed for the issuance of a digital euro, but has faced opposition from EU lawmakers due to privacy issues and potential risks to commercial banks. Piero Cipollone, a member of the ECB's Governing Council, told the Parliamentary Economic Committee on Thursday that the digital euro "will ensure that all Europeans can use a free, universally accepted digital payment method at all times, even in the event of major disruptions." Some lawmakers have raised objections, expressing concerns that digital currencies will not protect user privacy and that central bank-backed accounts will weaken the private sector. Regarding privacy issues, Cipollone emphasized that the central bank will not have information about payers and payees, and that the privacy protection of offline digital currency solutions is comparable to that of cash.

Central bank digital currency legislation has been submitted to the European Parliament since 2023, but has been delayed due to political and electoral factors. Cipollone stated that the ECB expects legislation related to the digital euro to be in place by the second quarter of 2026. The digital euro must be approved by the three major EU institutions: the European Parliament, the European Commission, and the European Council. Negotiations are likely to take several months. Passage of the law could take as late as mid-2026, after which the ECB would need to create and test the digital currency infrastructure, which could take up to three years. Barring any delays, the digital euro is expected to be launched around 2029.