ECB Targets 2029 Digital Euro Launch with €1.3 Billion Investment Amid Privacy Debate

European Central Bank (ECB) President Christine Lagarde recently championed the digital euro as "a symbol of trust and unity" for the continent, even as the crypto community voices strong opposition, labeling it a tool for control. The ECB announced its decision in late October 2025 to advance to the next phase of the digital euro project, aiming for a potential first issuance by 2029, contingent on legislative approval. This move initiates a significant development phase, estimated to cost around €1.3 billion, designed to ensure Europe's monetary sovereignty and payment system resilience.

President Lagarde emphasized the digital euro's role in future-proofing the currency, stating, > "The euro, our shared money, is a trusted sign of European unity. We are working to make its most tangible form – euro cash – fit for the future." The ECB envisions the digital currency as a complement to physical cash, facilitating online transactions across the EU and providing a public, universally accepted means of payment. Executive Board member Piero Cipollone added that it would "enhance the resilience of Europe’s payment landscape, lower costs for merchants, and create a platform for private companies to innovate."

However, the announcement has been met with substantial disapproval from the cryptocurrency community, which views Central Bank Digital Currencies (CBDCs) as antithetical to decentralized finance principles. Critics argue that a digital euro could enable real-time monitoring of citizens' spending habits, compromising privacy and civil liberties. Political analyst David Thunder noted, > "creating a central bank digital currency erodes that trust by enabling real-time monitoring of our payments and spending habits."

The ECB has sought to address privacy concerns, with Executive Board member Fabio Panetta stating that the digital euro would offer privacy "at least as strong as that of existing electronic payments." The design incorporates minimized data collection and segregated information, ensuring end-user identities are not visible to the Eurosystem. Furthermore, the project includes features like offline functionality to enhance privacy and resilience, allowing payments without an internet connection.

The development phase, which began in November 2023, has concluded successfully, with the Eurosystem now focusing on technical readiness and market engagement. The total development costs are estimated at approximately €1.3 billion until the 2029 issuance, with subsequent annual operating costs projected at €320 million. Legislative proposals in France and Germany have emerged to ban CBDCs, underscoring the ongoing political debate surrounding the initiative.