Μake us preferred on GoogleThe European Central Bank is on track to become the first major Western central bank to issue a retail central bank digital currency (CBDC), with the launch of a digital euro targeted for 2029 as policymakers seek to strengthen Europe’s payment infrastructure and reduce reliance on foreign payment providers and privately issued digital assets. The digital euro is scheduled to be introduced following a pilot phase due to begin in the second half of 2027. The trial will involve 36 banks and payment service providers from 19 countries, including Greece’s Piraeus Bank, National Bank of Greece, Bank of Chania, Bank of Cyprus and fintech company Revolut. The central bank says the initiative is intended to ensure that central bank money remains the foundation of the euro area’s payment system as transactions become increasingly digital and token-based. The digital euro forms part of a broader ECB strategy to modernize Europe’s payment infrastructure, covering retail and wholesale payments, business-to-business transactions and cross-border payments.