Cipollone: Central bank money secures national sovereignty

ECB Executive Board Member Piero Cipollone emphasized the critical role of central bank money in safeguarding national and monetary sovereignty, particularly in a globalized environment.

Speaking at Sapienza University, he noted that Italy's participation in the European Union, as per Article 11 of its Constitution, demonstrates how sharing sovereignty can strengthen it.

Monetary sovereignty, defined as control over central bank money's issuance, value, and role in payments, is a core attribute of modern statehood.

The euro, as the single currency, serves to protect and enhance this sovereignty.

Cipollone highlighted the euro's stability and resilience, noting its position as the second most important currency globally, with a nearly 20% share in international use, surpassing the euro area's weight in global GDP.

This robust international role, coupled with 82% public trust, reinforces Europe's monetary independence, even amidst recent geopolitical and trade tensions.

Cipollone stressed the urgent need to adapt to new realities, particularly addressing external dependencies in digital retail payments.

He highlighted Europe's heavy reliance on non-European solutions and payment rails, noting that international card schemes dominate two-thirds of euro area card transactions.

Furthermore, 13 out of 21 euro area countries lack a domestic card scheme.

This dependency, he warned, poses a significant risk to the resilience of payment systems and could be used as leverage against European interests.

He emphasized that if Europeans cannot control their day-to-day payments, they lose control of their money, necessitating action to reverse this trend.