The European Central Bank plans to launch the digital euro in 2029, with preparatory work to continue.

According to ChainCatcher, citing Bloomberg, the European Central Bank will continue to advance the foundational work for the digital euro after the current preparatory phase concludes this month, with plans to launch it in four years.

Sources revealed that ECB officials will decide to proceed with the preparatory work at a meeting held this week in Florence, Italy. If the legal framework is in place, they plan to issue the digital euro in 2029. The central bank officials launched a two-year preparatory phase for the project in 2023, hoping that the EU would pass the necessary regulations for the digital euro during this period. However, national governments and the European Parliament have yet to reach an agreement. The biggest obstacle comes from the European People's Party, with some of its members preferring to seek private sector alternatives to the ECB's digital solution. Nevertheless, as policymakers express increasing dissatisfaction with the excessive reliance on American companies for retail payments, the pressure to break the deadlock is mounting.