Few firms are building for a central bank digital currency yet, and the timelines suggest they are right to wait. Two respondents explain what they would need to see first, from lower fees than cards to flexible systems.

The digital euro now has a target date, but most firms are not building for it yet. The European Central Bank aims to be ready for a first issuance in 2029. Meanwhile, the UK has still to decide whether it wants a digital pound at all. As a result, the honest answer to our question was often “not much yet”. For the cheaper account-to-account rails that already compete with cards, see our explainer on pay by bank.

We asked one question: how is your company preparing for a possible digital pound, digital euro or other central bank digital currency, if at all? We wanted payments executives, product leads and strategists at banks, payment service providers and wallet providers. Our brief also asked for first-hand planning experience over commentary. Two people answered in this round, and we used both. Neither works at a bank or payment firm, so we’ve set their views against where the law stands.

The digital euro has a date but no final law

The ECB is ready to move faster than the lawmakers. On 5 November 2026, Executive Board member Piero Cipollone said the bank aims to be ready for a possible first issuance of the digital euro in 2029, according to a summary of his speech. That depends on EU legislators agreeing the regulation by the end of 2026. In addition, a 12-month digital euro pilot starts in the second half of 2027, with 36 payment providers chosen from more than 50 applicants.

The law itself is still in talks. In December 2025, the Council of the EU adopted its position. The European Parliament followed on 9 July 2026, by 416 votes to 169, Ledger Insights reported. Since then, both sides have been negotiating with the European Commission. However, they still differ on holding limits and on how to cap merchant fees, Freshfields notes. Therefore, banks and payment firms cannot yet see the final duties a digital euro would bring.

Merchants will compare it with cards

Lilach Bullock is an AI implementation consultant and fractional CMO, and she answered as a merchant rather than a payment firm.

“I’m not preparing for a digital pound yet, and I’d only switch if I could measure the saving. I should say I’m answering as a merchant rather than a bank or PSP, because I’ve invoiced my own work for 21 years. It would have to cost less than the card and platform fees I pay now, and settle faster than my current payments. Invoice references would also need to reconcile on the multi-currency dashboard I built, with no manual matching. And I’d want the same fraud protection and refunds I get with cards, plus privacy terms a normal person could read.”

Lilach Bullock, AI Implementation Consultant and Fractional CMO, Lilach Bullock

Her test is the one many small merchants will apply to the digital euro too: is it cheaper and faster than cards? EU negotiators are working on that question now. In September, Italy proposed that digital euro payments under €10 carry no fees, Euronews reported. An EU diplomat described a cap of up to €0.02 on low-value payments. Also, both EU institutions back uniform caps on merchant fees, so cost could become a real selling point.

Still, those caps are negotiating positions, not law. For the digital pound, no fee model exists yet, because the UK has not decided to build one. She is not preparing for a CBDC herself, and we could not verify the details of her own setup.

Prepare systems, not products

Omer Malik is chief executive of ORM Systems, which provides risk services and IT hardware.

“Preparing for a central bank digital currency starts with understanding what it would do to your existing payment systems, not rushing to build a new wallet. The big operational questions are interoperability, security, identity checks, and how CBDC payments would fit into existing compliance and settlement. I’d put flexibility first, so a business can adapt as the rules and technical standards become clearer.

For banks and payment providers, a practical first step is checking whether current systems could support a new payment method without disrupting existing services. A digital euro, for example, could bring new requirements for processing, customer authentication, privacy and reconciliation. I’d look at three things: how it would integrate with existing payment platforms, how systems would cope when transactions fail, and what it would cost to run several payment methods side by side.

My rule is to prepare the infrastructure before committing to the product. That means tracking central bank specifications, reviewing technology dependencies and spotting which components would need to change. A phased approach lets you test interoperability and security without spending heavily before the requirements are set. The risk people overlook is investing big in technology built on assumptions that may change as central banks finalise their designs. The safest strategy is to stay technically ready without committing early to a payment model that’s still uncertain.”

Omer Malik, CEO, ORM Systems

His caution fits the timetable. With the digital euro still in negotiation, the requirements he wants firms to track are not fixed. So heavy spending now would rest on guesswork. His point about running several payment methods side by side also matters for any firm in the pilot. A digital euro would sit next to cards, instant payments and cash, not replace them. However, ORM Systems is not a payment provider, and he describes no plan of his own. His answer reads as general advice rather than first-hand experience.

The digital pound and the US ban

The UK picture is less clear. The digital pound remains in its design phase, and the Bank of England says a decision on next steps will come in 2026. That decision will arrive alongside a blueprint and a joint assessment with HM Treasury. Economic Secretary Lucy Rigby said the government intends to announce it by the end of the year, PublicTechnology reported. So UK firms may get an answer within weeks.

The US has gone the other way. In July 2026, the ROAD to Housing Act became law without the President’s signature. It bars the Federal Reserve from issuing a CBDC until 31 December 2030, Cooley explains. As a result, US payment firms have no domestic CBDC to plan for this decade. Those serving European customers may still need to handle a digital euro, though.

What works for firms watching the digital euro

The two answers point to a sensible order of work. First, track the digital euro negotiations, because fee caps and holding limits will decide whether the business case works. Next, map which systems would need to change, from authentication to reconciliation, without committing budget yet. Then compare the likely cost against cards and existing account-to-account payments, as Bullock suggests. Finally, plan a phased test before any wider launch, much like the ECB’s own pilot. Firms working on tokenised settlement, such as users of the DTCC’s tokenisation service, will recognise some of the same questions.

What to watch next

The next few months will set the pace. Watch whether EU negotiators agree the digital euro regulation by the end of 2026, since the ECB’s 2029 target depends on it. Also watch the UK decision on the digital pound, which will show whether the Bank of England keeps building. In addition, the final digital euro fee caps will tell merchants whether it can undercut cards.

Above all, the digital euro will win merchants only if it beats what they already use. Until the law and the fee caps are settled, flexible systems and close tracking are the sensible way for most firms to prepare.

FintechBits covers payments, banking and fintech developments for readers in the US and UK. This article is for information only and is not financial or legal advice. Views expressed are those of the FintechBits editorial team.