This article was first published on The Bit Journal: What’s inside the plan for the ECB digital Euro, and will the project overcome existing legal obstacles?

The European Central Bank (ECB) will reportedly launch the ECB digital Euro sometime in 2029 if it succeeds in hammering out existing legal and logistical challenges. Officials working on the proposed central bank digital currency (CBDC) are currently laying the groundwork for the launch of the phase, which will conclude at the end of October 2025.

According to a Bloomberg report citing people close to the matter, officials at the European Central Bank are reviewing preparatory activities for the current phase of the ECB Digital Euro project as it nears its end. The ECB began its formal preparations for the proposed central bank digital currency in 2023, following an initial study that took 2 years.

Legal Challenges to be Ironed Out

Should the new CBDC project proceed to maturity, experts fear a new attempt to restrict financial freedom within the EU.  The ECB Digital Euro initiative extends beyond simply updating existing payment systems. Pundits believe there is an underlying political objective to reduce reliance on non-European financial networks and private cryptocurrencies.

At the moment, the plan faces legal challenges, as national governments and the European Parliament have yet to agree on rules governing the issuance of the ECB Digital Euro. There’s fear among proponents of the central bank digital currency project that the European People’s Party’s preference for private firms to have a role may have slowed the legislative process.

Fear Surrounds the Influence of Stablecoins

This comes as policymakers express concern about the heavy reliance on US-based payment providers such as PayPal, Visa, and Mastercard, amid pressure to reduce dependence on foreign networks for daily retail payments. There are also concerns about the growth of dollar-backed stablecoins, including those supported by leading US political figures.

Most European Central Banks and regulators believe the potential spread of stablecoins could threaten regional payment autonomy and the proposed ECB Digital Euro. Officials at the European Central Bank argue that a central bank digital currency would offer users a publicly governed alternative for retail transactions, preserving the legal tender status of banknotes and coins.

Conclusion

While the European Central Bank has set a 2029 launch target for its proposed Digital Euro, the project faces several legal and logistical challenges. ECCB Executive Board Member Piero Cipollone had previously suggested mid-2029 as a realistic timeline, in line with current projections.

Still, progress in aligning legal frameworks remains the key indicator of whether the 2029 launch date target will be feasible. Additionally, the European Commercial Bank is still working on the details of a wholesale CBDC after approving the settlement of distributed ledger technology transactions using central bank money.

Glossary on Key Terms

CBDC: A digital form of a country’s fiat currency that is a direct liability of the central bank, which could be used for payments and complements physical cash rather than replacing it.

Digital Euro: A proposed digital form of central bank money issued and backed by the European Central Bank (similar to physical euro banknotes and coins).

ECB: European Central Bank, which is the central bank for the euro and the monetary authority for the Eurozone countries.

Frequently Asked Questions about the Digital Euro

What is the proposed Digital Euro?

This is a proposed digital form of central bank money, specifically, the euro, that could be used by the general public in much the same way as cash, but in virtual form.

When will it be introduced?

It has not yet been decided whether and when the digital euro will be introduced, but the ECB has given a 2029 target launch date.

What would payments using the Digital Euro look like?

The digital euro could be used in all manner of payment scenarios, including at the point of sale or online checkout, and offline in combination with payment cards.

How would a digital euro work?

The digital euro would be stored in an electronic wallet set up with your bank or a public intermediary. They would allow users to make all their usual electronic payments – in their local store, online, or to a friend – with their phone or card, online and offline.

Read More: Will the ECB Digital Euro Plan to Reduce Reliance on US Payment Systems Succeed?">Will the ECB Digital Euro Plan to Reduce Reliance on US Payment Systems Succeed?

• The Financial Services Authority is enforcing AML compliance for stablecoin traders.
• Indonesia ranks seventh in the 2025 Global Crypto Adoption Index.
• The government is exploring Bitcoin as a potential reserve asset.

Bank Indonesia (BI) is advancing plans to introduce a blockchain-based financial instrument described as the country’s “national stablecoin version,” a digital currency backed by government bonds.

The initiative was unveiled by BI Governor Perry Warjiyo at the Indonesia Digital Finance and Economy Festival and Fintech Summit 2025 in Jakarta.

It reflects Indonesia’s effort to integrate blockchain technology into its monetary system through tokenised securities tied to the digital rupiah. The announcement was first reported by CNBC Indonesia.

The central bank said the new digital assets will take the form of tokenised government securities backed by the central bank’s planned digital rupiah, Indonesia’s central bank digital currency (CBDC).

The project is designed to blend monetary innovation with national financial stability, positioning Indonesia among a handful of emerging economies developing bond-backed digital assets.

Digital rupiah to underpin Indonesia’s national stablecoin

According to Warjiyo, the bank will issue digital versions of its securities, referred to as Bank Indonesia securities in digital form, which will operate as blockchain-based representations of sovereign bond holdings.

These digital securities will be backed by the digital rupiah, making them the foundation of what the central bank describes as Indonesia’s national stablecoin.

He explained that the stablecoin structure would rely on government bonds, or Surat Berharga Negara (SBN), as its underlying collateral, ensuring that its value remains tied to official assets rather than speculative cryptocurrencies.

The initiative marks a step towards tokenising the country’s debt market, creating an ecosystem where digital securities, stablecoins, and the central bank digital currency coexist.

Warjiyo said the plan reflects BI’s broader digital finance strategy aimed at improving transparency, efficiency, and liquidity across financial markets.

If successful, it could reshape how monetary authorities interact with blockchain infrastructure in Southeast Asia.

Blockchain integration into Indonesia’s monetary system

The introduction of the bond-backed digital rupiah is expected to strengthen Indonesia’s transition towards a blockchain-integrated economy.

While stablecoins are not currently recognised as legal tender, their use in payments and remittances has increased, prompting regulatory attention from Indonesia’s Financial Services Authority, known as the OJK.

Dino Milano Siregar, who leads the OJK’s crypto and digital asset division, said the agency enforces anti-money laundering (AML) compliance and requires periodic reporting from stablecoin traders.

The OJK’s supervision reflects growing awareness of the potential systemic role of digital assets, even without formal recognition as payment instruments.

Siregar added that stablecoins are already being used as hedging tools, especially those backed by credible assets such as government bonds or reserve currencies.

Their comparatively lower volatility makes them appealing for remittance transactions and cross-border settlements.

This practical use case aligns with BI’s ambition to institutionalise a regulated form of stable value exchange through the digital rupiah.

Indonesia among global leaders in crypto adoption

Indonesia’s rapid shift towards digital finance is underpinned by strong adoption trends. The country ranks seventh in the 2025 Global Crypto Adoption Index published by Chainalysis.

It placed ninth in retail activity, seventh in value received through centralised exchanges, and fourth in decentralised finance (DeFi) transactions.

These figures highlight Indonesia’s growing role in global digital asset markets.

In August, local advocacy group Bitcoin Indonesia reported that government officials were exploring Bitcoin as a potential reserve asset, with discussions centred on how such holdings could diversify national reserves and stimulate economic growth.

If Indonesia proceeds with its stablecoin framework alongside its digital rupiah and potential Bitcoin reserve diversification, it could emerge as a major blockchain hub in Asia.

The combination of regulatory oversight, tokenised government debt, and CBDC integration places Indonesia among countries like China and Singapore that are redefining the future of sovereign-backed digital assets.

The post Bank Indonesia moves to issue a national stablecoin backed by government bonds appeared first on CoinJournal.

European Central Bank officials kept a clear target this week: launch the digital euro in 2029. That goal was described as realistic by senior ECB figures, even as the bank said it will carry on with preparation work beyond the formal end of its current phase in October 2025. According to Bloomberg and ECB statements, the timetable depends on new EU laws and technical readiness.

Preparation Phase Continues After October 2025

Based on reports, the ECB started the preparation phase in November 2023 and has been building rules and testing options since then. The formal stretch of that phase was due to finish in October 2025, but officials said work will not stop.

Tasks left on the list include finalizing the rulebook, deciding how privacy and anti-money-laundering checks will work, and lining up service providers and technical infrastructure. No final decision to issue will be taken until the legal framework is in place.

What The 2029 Target Means For Markets And Banks

Reports have disclosed that the bank aims for a mid-2029 launch if everything aligns — legislation, systems, and user tools. That leaves four years for lawmakers and market players to move.

Banks will be watching closely. So will fintech firms and payment platforms. Some regulators have said they want central bank money available electronically so citizens can keep using safe public money as cash use falls.

Political Pressure And International Context

According to media coverage, political signals from outside the EU have helped speed talks. US President Donald Trump’s moves on crypto and stablecoin regulation were cited by some EU ministers as a reason to solidify Europe’s own plan.

The ECB says the digital euro is partly about keeping public money relevant as private payment options multiply. Any decision to issue and distribute a retail CBDC will still need approval from EU lawmakers before the bank can start broad rollouts.

Open questions around design and limits remain. Will retail accounts hold interest? How much can a person keep in digital euros? Can citizens use the currency offline? These are basic questions that lawmakers and the ECB must answer together.

Reports say the ECB is aiming to protect privacy while meeting AML rules, but those goals sometimes conflict and will need trade-offs.

A narrow window, but not a guarantee. The 2029 timeline is a signal to markets and developers. It is a target, not a promise. Based on reports, the bank’s path will be shaped by how quickly EU legislation moves and how well technical trials go over the next months and years.

Featured image from Getty Images, chart from TradingView

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The country has also legally recognized its central bank digital currency (CBDC), the digital som, with plans to pilot government-related payments with it.