A member of the European Central Bank's executive board has warned that the absence of a digital euro could lead to fragmentation across payment platforms, potentially weakening Europe's financial resilience and monetary sovereignty.
ECB executive board member Piero Cipollone stated that without a unified digital payment solution capable of handling everyday transactions, alternative systems provided by other entities could proliferate. He emphasized that the ECB aims to develop a digital euro that can be exchanged across banks for routine transactions.
"Our objective is not to take over the role of banks," Cipollone said. "On the contrary, the digital euro would equip banks with the infrastructure they need to compete in the digital age and help them expand the reach and use cases of their own solutions."
According to Cipollone, the ECB has not yet decided to proceed with issuing a digital euro but plans to conclude the legislative process by the end of 2026. If approved, the central bank would conduct a 12-month pilot program beginning in the second half of 2027, with potential issuance in 2029.
The ECB first proposed a digital euro in October 2020 as a central bank digital currency to serve as a digital complement to physical cash. The proposal has faced criticism from those concerned that a digital currency could enable government surveillance and control over spending.
Cipollone previously stated that a digital euro would ensure all Europeans have access to a free, universally accepted digital payment method at all times, including during major disruptions.
