Cipollone targets 2029 digital euro rollout alongside Pontes
The European Central Bank aims for a potential first digital euro issuance in 2029 following a 12-month pilot starting in late 2027. Executive Board member Piero Cipollone also highlighted the launch of Pontes to settle wholesale tokenised assets in central bank money.
Testing retail resilience before issuance
Speaking at the MNI Connect Webcast, Cipollone outlined the progress of the digital euro project following positions agreed by the EU Council in December 2025 and the European Parliament in July 2026.
The Eurosystem has selected 36 payment service providers for a 12-month pilot starting in the second half of 2027, with potential first issuance planned for 2029.
An ECB study of 2,025 banks found that individual holding limits between €500 and €3,000 effectively protect financial stability.
With a €3,000 holding limit, the banking sector's aggregate liquidity coverage ratio would drop only from 166 percent to 163 percent, while ongoing cash reduction is projected to bring €127 billion in new deposits by 2034.
Two pillars for wholesale tokenisation
In wholesale finance, the Eurosystem launched Pontes on September 21 to connect market distributed ledger platforms with central bank money settlement.
Pontes is scheduled for full implementation by mid-2028, featuring round-the-clock operation and multi-currency capabilities.
In parallel, the ECB is advancing the Appia initiative to deliver a structural blueprint for European tokenisation in 2028.
A market contact group of 61 entities will guide Appia's design to ensure tokenised bank deposits remain interchangeable at par.
Essential defense, uncertain private appetite
The ECB's dual approach sensibly defends monetary sovereignty against foreign dominance and market fragmentation.
However, success depends on commercial banks enthusiastically adopting rails they spent years resisting.
Without active private sector distribution, these platforms risk limited adoption.