European CBDC Won’t Come Out Until 2028, According to Germany’s Central Bank President

European CBDC Won't Come Out Until 2028, According to Germany's Central Bank President
Table of Contents


  • Launch Postponed: The launch of the digital euro, Europe’s CBDC, is delayed until at least 2028 due to challenges in the preparation phase and the need for a thorough European legislative process.
  • Privacy & Security Concerns: Critics highlight potential risks of CBDCs, including privacy infringement through transaction surveillance and vulnerability to cyber-attacks, questioning the improvement over existing payment systems.
  • Economic Impact: The delay signifies Europe’s cautious stance on digital currency adoption, balancing innovation with financial stability, and continues the anticipation for a system that could transform the eurozone’s economy.

The digital euro, a central bank digital currency (CBDC) that promises to revolutionize the financial landscape of Europe, is now expected to be delayed until at least 2028, as per Dr. Joachim Nagel, President of Germany’s Bundesbank. This projection extends the timeline significantly, pushing the advent of a unified European payment method further into the future.

The digital euro aims to unify payment methods across the eurozone, offering a secure, convenient, and fast alternative to current systems. It is envisioned to be backed by the European Central Bank (ECB), distinguishing it from cryptocurrencies and providing a stable electronic form of cash.

The digital euro faces a myriad of challenges and criticisms. The ECB’s two-year “preparation phase” has been initiated, focusing on finalizing rules, selecting partners, and conducting tests. However, the Governing Council’s decision to proceed will only come after the European legislative process concludes.

Privacy and Security: The Core Concerns of CBDCs

European CBDC Won't Come Out Until 2028, According to Germany's Central Bank President

Critics argue that the digital euro may not offer substantial improvements over existing payment options and could pose risks during financial crises. Concerns about privacy and the impact on banks’ held money have also been raised. To mitigate these concerns, the ECB plans to limit individual holdings of the digital euro, likely to around 3,000 euros.

One of the most pressing concerns about CBDCs is the risk to privacy; CBDCs could enable unprecedented surveillance of citizens’ financial transactions, leading to a potential loss of financial privacy. There’s also the issue of cybersecurity; as digital platforms, CBDCs are susceptible to hacking and cyber-attacks, which could jeopardize the stability of a nation’s financial system. 

The delay in the launch of the digital euro raises questions about Europe’s readiness to embrace a digital financial era. While the ECB emphasizes the need for a digital euro to foster competition and maintain monetary sovereignty, the postponement suggests a cautious approach amidst complex regulatory and technical landscapes.

As we look towards a future where digital currencies become more prevalent, the extended timeline for the digital euro’s debut reflects the intricate balance between innovation and stability in the financial sector. The wait continues for a unified, digital payment system that could potentially transform the eurozone’s economy.


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