FILE PHOTO: Representations of virtual currency Bitcoin and euro banknotes are seen in this picture illustration taken January 27, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FLORENCE, Italy (Reuters) -The European Central Bank said on Thursday it could launch a pilot of its digital currency in 2027 provided it can secure timely approval from lawmakers for a project it deems vital for the euro zone's financial autonomy.
The ECB has presented it as a strategic alternative to private, U.S.-dominated means of payment such as credit cards and stablecoins — a move it says is increasingly important in an era of heightened geopolitical friction, where financial autonomy and resilience are seen as key to safeguarding Europe's economic sovereignty.
After four years of study and preparation, the ECB said it was now looking at carrying out a pilot, meaning some transactions in digital euros may be carried out as soon as mid-2027, before a full-scale launch two years later.
"A pilot exercise and initial transactions could take place as of mid-2027," the ECB said in a statement. "The whole Eurosystem should then be ready for a potential first issuance of the digital euro during 2029."
But this was conditional on European Union lawmakers – who include the European Parliament, Council and Commission – passing legislation providing a basis for the digital euro next year.
Securing that has proven difficult, with lawmakers picking up concerns from banks that the digital euro may hollow out their coffers and cost too much to set up.
EU governments have claimed a last say on whether a digital currency should be launched at all and how many such euros residents will be able to own.
The ECB, which estimates the cost for the industry will be between 4 billion euros ($4.66 billion) and 5.77 billion euros after taking into account savings and synergies, said it would continue to work with legislators.
($1 = 0.8575 euros)
(Reporting by Francesco Canepa, Editing by William Maclean)
