Cipollone: Digital euro strengthens European autonomy
ECB Executive Board member Piero Cipollone highlighted the strategic importance of the digital euro for Europe's payment landscape. He emphasized its role in fostering autonomy and resilience against the dominance of non-European card schemes.
A digital form of cash for Europe
Cipollone noted that European retail payments are largely dominated by non-European card schemes, with nearly two-thirds of euro area card transactions processed by international providers.
He stated that 15 out of 21 euro area countries lack a significantly used domestic solution for digital in-shop payments.
The digital euro is envisioned as an additional, inclusive, and accessible way to pay across the euro area, complementing cash and ensuring freedom of choice for consumers.
As payments increasingly move online, Cipollone argued that public money must follow to maintain strategic autonomy and resilience in daily payment infrastructures.
The digital euro aims to provide privacy and data protection for users, along with benefits for merchants such as lower fees and instant receipt of funds.
Pilot phase and legislative push
The Eurosystem is preparing for a 12-month pilot phase, scheduled to start in the second half of 2027.
This pilot will be conducted in a controlled environment, involving real-world transactions and testing four specific use cases.
Over 50 payment service providers have applied to participate, offering a broad range of business models and country coverage.
The outcome of the selection process is expected to be announced in July 2026.
Simultaneously, legislative preparations are advancing, with the EU Council urging co-legislators to finalize the digital euro legislation by the end of 2026.
The ECB's Governing Council will only consider the decision on whether to issue the digital euro once this legislation has been adopted.