Cipollone backs digital euro and tokenised settlement in public money
Piero Cipollone, Executive Board member of the European Central Bank (ECB), set out its retail and wholesale digital-money strategy on October 6, 2026. Readiness for potential digital euro issuance in 2029 depends on legislation being concluded by end-2026.
Holding limits protect bank funding
The digital euro would support online and offline payments across the euro area, distributed by banks and regulated providers without remuneration and with holding limits.
Two-thirds of card payments use international schemes; 13 of 21 countries lack domestic schemes.
ECB tests covered 2,025 banks and hypothetical limits of €500–€3,000, not an agreed limit.
By 2034, digitalisation-driven deposit inflows of €127 billion, or 0.4 percent of bank assets and 1.5 percent of retail sight deposits, exceed modelled normal-scenario outflows.
Excluding inflows, a €3,000 limit lowers liquidity coverage from 166 to 163 percent and stable funding from 128 to 127 percent.
Under extreme stress, nine banks, holding 0.1 percent of assets, risk liquidity coverage below 100 percent.
Pontes connects tokenised markets
Pontes began operating on September 21, 2026, connecting market distributed-ledger platforms with Eurosystem services to settle tokenised assets in central bank money.
Full implementation is planned for mid-2028, including 24/7 service, programmability and multi-currency capability.
Appia targets a blueprint in 2028 for an integrated tokenised ecosystem.
Its consultation received 127 responses; 90 percent offered contributions.
A contact group includes 61 entities from more than 100 applicants.
Both initiatives support exchanging different banks' tokenised deposits at par.
Preparation is not issuance
The Governing Council will decide on issuance only after legislation passes.
Positions adopted by the EU Council in December 2025 and Parliament in July 2026 have opened trilogue negotiations.
A 12-month pilot starts in the second half of 2027 with 36 providers selected from more than 50 applicants, testing the payment ecosystem.