Europe's money evolves: Digital euro and cash secure payment freedom

Ensuring people's freedom to use cash remains a core central bank objective, according to ECB Executive Board Member Piero Cipollone.

He welcomed the legislative proposals treating cash and the digital euro as a single package, reinforcing their status as the same money using different technologies.

The ECB strongly supports the legal tender proposal for cash, which aims to safeguard its acceptance and availability while aligning policies across the euro area.

This commitment extends to the ongoing redesign of euro banknotes, with a final theme expected by year-end and new, more secure, and sustainable denominations planned for the early 2030s.

Together, cash and the digital euro are seen as crucial for safeguarding monetary sovereignty and freedom of choice in payments.

The digital euro aims to reduce Europe's reliance on proprietary international card scheme standards by establishing uniform open standards across the euro area.

This will enable all payment devices to 'speak the same European language,' enhancing scalability for European private payment solutions without requiring further technical upgrades.

In May, the ECB signed cooperation agreements with three European standard-setting organizations, providing early clarity to the market.

This reduces adaptation costs and facilitates coordinated adoption, allowing payment service providers to align development plans.

Cipollone emphasized that legal certainty from co-legislators is crucial for these standards to apply universally, contributing to Europe's autonomy in payments.