European Central Bank outlines rollout schedule and offline features for digital euro

What was announced

European Central Bank Executive Board member Piero Cipollone spoke with Milano Finanza about the state of the digital euro project. Cipollone stated that the ECB will launch a pilot in 2027 using real transactions conducted by central bank staff. If Brussels lawmakers approve the required regulation in 2026, the ECB could roll out the digital euro to the public by 2029.

Cipollone outlined key operational details. The digital euro will run on a European infrastructure using European providers. It will feature holding limits on individual digital wallets to safeguard commercial banks during economic crises. However, users can make payments that exceed their wallet balance by automatically drawing funds from linked bank accounts. Offline payments will allow direct device-to-device transactions without internet access, keeping payment details strictly between payor and payee. The Eurosystem will offer a basic app, but private commercial banks will manage customer relationships and distribute the currency.

What it means

The ECB wants an independent European payment infrastructure for online and offline shopping. Right now, two thirds of card payments in Europe rely on non-European card schemes. In Italy, online payments grew from 6 percent of total payments in 2019 to 24 percent in 2024.

A digital euro would give residents a cash equivalent issued by the central bank for internet purchases. It also aims to lower costs for small businesses. Small shop owners currently pay merchant fees that can be up to four times higher than those paid by large corporations. Legally binding fee caps for the digital euro would increase competition.

For everyday users, cash will remain available. The central bank does not plan to replace physical banknotes or force consumers onto a single app. Instead, citizens can choose whether to use their existing bank apps or the standalone Eurosystem application.

What the announcement does not tell us

The interview does not state the exact holding limit that will apply to individual digital euro wallets. Cipollone noted that the limit will be properly calibrated, but the exact euro amount remains unspecified.

The ECB also does not explain the exact legal fees or cost structures for merchants beyond noting that legal caps will exist. Furthermore, the announcement does not specify a precise date for when Brussels lawmakers will finish negotiating the final regulation, stating only a hope that adoption occurs by the end of the year.