Digital Euro Beyond 2029 is at risk if European Union lawmakers delay the legislation needed for the project. On November 10, European Central Bank Executive Board member Piero Cipollone urged negotiators to reach a deal before the end of 2026.

Cipollone told the European Parliament’s Committee on Economic and Monetary Affairs that further delay could push a potential first issuance beyond 2029. The ECB is preparing for a possible launch, but legislation and a later decision by its Governing Council remain necessary.

Digital Euro Beyond 2029 Depends on Legislation

The European Parliament, the Council of the European Union and the European Commission have negotiated the regulation in trilogues since July. Those talks must settle rules for banks, payment companies and merchants, including a commercial model for merchant fees.

Ireland is aiming for a negotiating deal on November 18, according to Euronews. The institutions held another round on November 5 and are still working through the remaining issues. Cipollone wants the broader process completed before the end of 2026.

European leaders called in March for negotiations to conclude by the end of 2026. The Council adopted its negotiating position in December 2025. Parliament’s economic affairs committee approved its position on June 23, 2026, by 43 votes to 14, with one abstention.

Parliament approved its negotiating mandate on July 9 by 416 votes to 169, with 22 abstentions. The mandates opened negotiations on the final text, but the regulation still needs adoption. Cipollone said a delay could postpone the currency’s introduction.

The ECB’s 2029 objective therefore remains conditional. Even after legislation passes, the Governing Council must decide whether and when to issue the currency. Cipollone argued that a delayed launch could deepen reliance on foreign payment providers and leave domestic businesses at a disadvantage.

A 12-Month Pilot Would Test 36 Providers

While lawmakers negotiate, the ECB is preparing a 12-month pilot for the second half of 2027. It selected 36 banks and payment firms in July, from more than 50 applicants. Deutsche Bank, UniCredit and Stripe are among the selected participants.

ECB employees, staff from 19 national central banks and selected merchants are expected to test a beta version. The currency used in the exercise will not have legal tender status. The pilot is designed to test payment processes before any public issuance.

The planned transactions include cafeteria purchases, person-to-person transfers and online shopping. The ECB will assess reliability, payment processing and customer experience.

Fees and Safeguards Remain Under Discussion

Parliament’s negotiating position calls for free basic consumer services, including account opening and payments. It would require businesses to accept the digital euro, subject to exemptions, and restrict fees charged to merchants and payment providers. Those terms remain under negotiation.

Lawmakers are also negotiating offline payment limits intended to address money laundering and terrorist financing. Parliament’s position includes individual holding limits, following concerns that customers could move deposits into ECB-guaranteed wallets.

The proposal includes offline phone-to-phone payments that would check a token’s authenticity without recording payer and recipient identities, according to program adviser Alessandro Giovannini. He compared the exchange to handing over cash.

The legislative debate sits within a wider discussion about European payment rules. Coin Review News has reported on stablecoin banking safeguards and proposed U.S. crypto rules, while another report examined tokenization infrastructure and regulation.

The next milestones are completing the regulation, conducting the planned tests and securing a Governing Council decision. The ECB’s 2029 objective depends on the legislative process and that later decision. Cipollone’s requested year-end 2026 deal would provide the legal basis for the ECB to continue preparations.

Cipollone’s warning on delays places the immediate focus on the negotiators’ remaining work. The pilot can test the payment system, but it cannot replace the legislation required before any possible issuance.