TLDR
- ECB board member Piero Cipollone says the digital euro would reduce Europe’s reliance on non-European payment companies.
- A pilot using real transactions by ECB and national central bank staff will start in 2027.
- The digital euro could launch as early as 2029 if EU lawmakers approve the regulation this year.
- There will be limits on how much people can hold, but no limits on payments. Offline payments will also be possible.
- Banks will distribute the digital euro, and the ECB will not open accounts for individuals.
European Central Bank Executive Board member Piero Cipollone says the digital euro could give Europe more control over how its people pay. He made the comments in an interview with Italy’s Milano Finanza, which the ECB published on October 24.
Cipollone said payments are a key part of Europe’s economy. “If the payment system stops working, the economy stops working,” he said.
Why the ECB Wants a Digital Euro
Today, the public can only use central bank money in the form of cash. Cipollone said the digital euro would fill that gap online, where banknotes cannot be used.
He pointed to Italy as an example. Online payments there grew from 6% of all payments in 2019 to 24% in 2024.
Most of those online payments are made by card. Cipollone said two thirds of these card payments run through non-European card schemes.
“In recent years Europe has learned that, for some essential services, we cannot rely only on third parties,” he said. He compared payments to energy and defense but did not name specific companies.
He added that sovereignty does not mean shutting others out. “It means having the power to choose,” he said.
Cipollone also said small shops can pay fees up to four times higher than large businesses. He said legal caps on costs under the digital euro should help lower those fees.
How the Digital Euro Would Work and When It Could Launch
There will be a limit on how much digital euro a person can hold in a wallet. There will be no limit on spending, since larger payments can pull the rest from a linked bank account.
The digital euro will also work offline. Two devices can be tapped together to pay during a power cut or in areas with weak internet.
Cipollone said offline payment details would stay between the buyer and the seller, much like cash. People will be able to use the digital euro through their bank’s app or a standard Eurosystem app.
The ECB will not open accounts for individuals. Banks and other approved firms will distribute the digital euro and manage customer relationships.
The system will run on infrastructure built only by European providers. Cipollone said cash will continue to exist alongside the digital euro.
A pilot using real transactions by ECB and national central bank staff will begin in 2027. So far, 36 market operators, including seven from Italy, are helping with preparations, and the ECB is inviting e-commerce and mobile commerce firms to join.
The ECB Governing Council can only make a final decision after lawmakers in Brussels finish talks on the regulation. If the regulation is approved this year, the digital euro could launch as early as 2029.
“We hope that the regulation will be adopted by the end of the year, enabling the ECB’s Governing Council to issue a formal decision on issuance,” Cipollone said.
