The European Central Bank (ECB) has completed the two-year preparation phase of its digital euro project, delivering a draft rulebook and confirming the start of a modular build phase. An update from the bank this week marks a shift from design to technical readiness, with pilot testing possible from mid-2027.
The draft rulebook sets out a unified framework for payment service providers (PSPs), including functional and non-functional requirements, user experience standards, dispute management procedures, and branding guidelines. It distinguishes between mandatory provisions and optional guidance, aiming to balance standardisation with flexibility.
A rollout plan is now under development to support implementation by scheme participants, though no service requests have been issued and no financial commitments made. The ECB’s modular strategy allows for gradual scaling and adaptation to future legislative decisions.
Two technical studies requested by EU co-legislators were also completed:
- A financial stability analysis found no systemic risk from holding limits of up to €3,000 per person, even under extreme scenarios.
- A cost assessment estimated banking sector investment requirements at €4–5.8bn, comparable to PSD2 implementation.
Development costs for the digital euro are projected at €1.3bn through 2029, with annual operating costs of €320m from that point onward. The ECB confirms that pilot testing could begin in mid-2027, with a potential issuance decision in 2029 — contingent on the adoption of the proposed EU Regulation.
The report also highlights continued stakeholder engagement, including user research and experimentation with features such as conditional payments and offline functionality. Findings from these initiatives will inform the next phase of development and legislative debate.
With its rulebook delivered and technical architecture mapped, the digital euro is now structurally ready — awaiting only political authorisation.
