European Central Bank President Christine Lagarde said legislation for the digital euro could be finalized by the end of 2026, adding that “the sooner, the better,” Reuters reports.

Speaking at an informal meeting of the Economic and Financial Affairs Council (ECOFIN) in Dublin, Lagarde said the pilot project for the digital euro is expected to begin in mid-2027, in line with the current schedule.

She also announced the launch of “Pontes,” described as “the digital euro made available to banks.” The Eurosystem solution is based on distributed ledger technology (DLT) and is designed to connect market DLT platforms with TARGET services for the settlement of wholesale financial transactions using central bank money. Pontes is scheduled to begin operations on Monday.

Lagarde also said the economic outlook remains uncertain and noted that interest rates are not moving “in sync” with energy prices.

She described rising bond yields as part of a global trend and said financial markets should continue to be closely monitored. At the same time, she said there had been no “disorderly movements” in markets.

Lagarde also left open the possibility of leaving the ECB before the end of her term in October 2027. Asked by Irish public broadcaster RTE about reports of a possible early resignation, she said, “I am leaving in 2027.”

When asked whether she meant October 2027, the scheduled end of her term, Lagarde replied, “We shall see.”

“What I can say at this stage is that, whenever it happens, the matter will be handled in the most professional manner possible, as it should be,” she added.

Earlier this week, Reuters sources said France would support Dutchman Klaas Knot as Lagarde’s successor under an arrangement that would see a French candidate appointed as the ECB’s chief economist.