The European Central Bank plans to begin a 12-month pilot of the digital euro in the second half of 2027, according to ECB President Christine Lagarde at the annual IMF meetings. She stated that this new form of currency will complement cash, enhance competition in the payments market, and reduce Europe’s reliance on foreign infrastructure. To implement these plans, relevant legislation must be enacted by the end of 2026. The potential issuance of the digital euro is expected in 2029, although a final decision has not yet been made. Lagarde also noted the resilience of the eurozone economy despite inflation accelerating to 3.8% in September.
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