Cipollone outlines digital euro's role in strengthening European payments

The rapid digitalisation of payments challenges Europe's monetary sovereignty, as cash use declines and non-European companies dominate card-based transactions.

Piero Cipollone highlighted that almost two-thirds of euro area card transactions are processed by international schemes, creating a structural gap where central bank money remains confined to physical cash.

To address this, the Eurosystem is preparing a digital euro to complement physical cash, ensuring public money remains available and usable in an increasingly digital economy.

This initiative aligns with the ECB's core mandate to issue central bank money and promote smooth payment systems, extending its efforts beyond wholesale DLT settlement (Pontes, Appia) and cross-border payment improvements to secure retail payment autonomy.

The digital euro promises a single, universally accepted payment solution for consumers, offering online and offline functionality with privacy akin to cash for offline transactions.

A Eurosystem survey showed 66 percent of Europeans are interested.

For merchants, it provides a European alternative to international card schemes, which often charge high fees.

Small businesses could see their digital payment costs halved, fostering a more balanced market.

It would also enable instant payment reception and ensure acceptance even without internet connectivity, enhancing resilience for euro area businesses.