The European Central Bank expects to have the political groundwork in place by early next year to move forward with a digital euro, with a launch timeline of two to three years after that, ECB Executive Board member Piero Cipollone said on Thursday.

Speaking at a financial conference, Cipollone noted that while technical preparation has progressed, the ECB is still waiting on EU legislation that would give it the legal authority to issue a digital currency.

“I hope to have everything done by the beginning of next year, very early next year,” Cipollone said. “We need the legislation in place, and from that, two to three years will be enough to launch the digital euro.”

The ECB has been exploring a central bank digital currency (CBDC) for several years, but delays in legislative approval have slowed progress. A key challenge remains securing political consensus among EU member states, though Cipollone said a deal could be reached before the summer. Work by the European Parliament may take longer, he added.

The push for a digital euro gained new urgency in the wake of geopolitical uncertainty and recent financial volatility following Donald Trump’s return to the U.S. presidency. Europe’s heavy dependence on American payment giants like Visa and Mastercard has been flagged as a strategic vulnerability, with officials warning that it leaves the bloc exposed in the event of transatlantic friction.

Unlike private digital payments, a digital euro would give consumers a direct claim on the ECB, offering similar security and legal status to cash. It would support both online and offline transactions, providing a state-backed alternative to commercial banking systems and tech platforms.

Speaking alongside Cipollone, French central bank governor François Villeroy de Galhau said Trump’s election reveived the ECB’s commitment to monetary sovereignty. “It enhanced our determination,” Villeroy said when asked whether recent political developments were speeding up the timeline.

The ECB is currently in the preparation phase of its digital euro project, having completed an initial two-year investigation in 2023. A formal decision to issue the digital currency is still pending, contingent on political and legal clarity.

If approved early in 2025, the digital euro could be in the hands of European consumers as early as 2027 or 2028.