The European Central Bank (ECB) has announced plans to conduct a second round of digital euro experiments next year, building on the findings of its initial innovation platform.

The move signals growing momentum for the digital euro project, which could see the currency rolled out as early as mid-2029, according to ECB executive board member Piero Cipollone.

The ECB’s first innovation platform, launched in October 2024, brought together nearly 70 market participants, including merchants, fintech firms, banks, and academics, to explore the digital euro’s potential. The initiative featured two workstreams: “visionaries,” who focused on conceptual ideas, and “pioneers,” who tested technical applications. Both groups highlighted the importance of harmonised standards and shared infrastructure for the digital euro’s scalability and reliability across the euro area.

Conditional payments emerged as a key area of innovation. These are transactions triggered automatically when predefined conditions are met, such as funds being released to a seller only after a buyer confirms delivery. The ECB’s report noted, “Conditional payments… were identified as a possible key driver of innovation and an example of how the digital euro could improve the day-to-day lives of European citizens.” The report also pointed to applications in public transport, insurance reimbursements, and business-to-business payments, where automation could reduce costs and increase efficiency..

Integrated electronic receipts were another focus, with the potential to simplify returns, warranty claims, and expense tracking for consumers, while reducing operational costs for merchants. The ECB highlighted the environmental benefits of eliminating billions of printed receipts annually, noting that e-receipts would be strongly encrypted and accessible only to buyers and sellers.

Financial inclusion and accessibility are central to the digital euro’s design. The ECB envisions tailored wallets for children and students, voice-controlled transactions, and large-font displays to ensure the currency is usable by all. Cipollone described the project as a “major breakthrough,” citing recent agreement among euro-area finance chiefs on customer holding limits. He stated, “The middle of 2029 could be a fair assessment” for the digital euro’s launch.

The next steps depend on legislative progress, with the European Parliament expected to take a position by May and member states aiming for an agreement by year-end. The ECB will continue to engage with stakeholders to ensure the digital euro meets market needs and supports innovation.

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