Nov 11, 2026
The digital euro will not be derailed by Christine Lagarde’s early departure from the European Central Bank presidency, an ECB official said on Tuesday at Lisbon’s Web Summit, one of Europe’s biggest technology gatherings.
Alessandro Giovannini, adviser to the digital euro programme manager, cited the pilot due to start next year and a pledge by EU lawmakers to settle the legislation by year-end. Speaking on a Euronews-moderated panel, he said he had no fear that any change would affect the effort, calling it a strategic endeavour and a European project rather than the ECB’s alone.
Leadership changes
Lagarde said last month she would leave on 7 February 2027, nearly nine months early. Germany’s Isabel Schnabel also exits the six-member Executive Board, the ECB’s top management team, in January, while chief economist Philip Lane’s mandate runs out in May. As Euronews previously reported, Spain’s Pablo Hernandez de Cos and the Netherlands’ Klaas Knot are presently the two leading contenders to replace Lagarde.
Lawmaking calendar
EU leaders in March urged that talks on the digital euro law wrap up by the end of this year, ahead of the pilot planned for 2027. Giovannini described this as the commitment from the co-legislators, namely the European Parliament and EU governments. The two sides have been in trilogues, three-way negotiations with the European Commission that constitute the last stage of EU lawmaking, since July. The most recent round was last Thursday, and Ireland, which chairs the member-state talks, is reportedly seeking a deal on 18 November.
One unresolved issue is how the fees merchants pay are calculated, part of the digital euro’s business model. The ECB wants to be ready for a first issuance in 2029, while technical work proceeds independently of the Brussels discussions.
Pilot and infrastructure
In July the ECB picked 36 banks and payment firms, among them Deutsche Bank, UniCredit and Stripe, for a 12-month pilot beginning in the second half of 2027. Last month it selected network providers, including payments firm Nexi and telecoms group Telefonica, to link them to its platform. Giovannini said the first pilot transactions would arrive in under a year, adding that the firms building the system were all European companies controlled by other European companies.
Banks will not pay for the shared infrastructure, which Giovannini said the ECB would fund and offer free to everyone. The ECB has estimated development will cost about EUR1.3 billion before a first issuance, with running costs of roughly EUR320 million a year from 2029, borne by eurozone central banks, as with banknotes.
Global backdrop
Europe lags China, which has piloted its digital yuan since 2019, while the US chose the opposite route with the GENIUS Act, passed last year, leaving the field to private stablecoins, crypto tokens pegged to a currency such as the US dollar. Giovannini conceded that the best time to plant a tree was yesterday, adding that Europe has its own time and must accept the legislative pace that comes with it. What mattered in the end, he said, was that no time is being lost.
The wait until 2029 mirrors the scale of the task, Giovannini noted, with over 4,000 payment providers and millions of merchants to coordinate. The digital euro seeks to reduce Europe’s dependence on international card schemes such as Visa and Mastercard. ECB board member Piero Cipollone said last week that in 13 eurozone countries, card payments in shops run entirely through non-European firms.
Design and privacy
Unlike China, which since January has allowed banks to pay interest on digital yuan wallets, the digital euro will bear no interest. Giovannini said that as banknotes give no yield, neither would the digital euro, though banks and fintech firms could offer their own rewards.
Critics caution that a central bank digital currency could allow the state to monitor or even control people’s spending, a view Giovannini disputed. Holding up a EUR20 banknote, he said offline digital euros, sent by tapping phones without an internet connection, would function like cash. The system would merely verify that the token was genuine, leaving no digital trace linking sender and recipient or their bank. Such payments will face limits, which lawmakers have been negotiating, to curb money laundering and terrorist financing risks.
For online payments, banks would know who paid whom, as they do today, but the ECB would see only pseudonymised data. Giovannini pledged that the ECB, positioned in between, would never see anything, contrasting this with the card schemes that sit in the middle of payment rails today.










