ECB Official Higlights Importance of Digital Euro

European Central Bank (ECB) Executive Board member Piero Cipollone has emphasized the importance of the digital euro in strengthening Europe's financial independence, arguing that the proposed central bank digital currency (CBDC) could reduce the region's reliance on non-European payment providers.

In an interview with Italy's Milano Finance, published by the ECB, Cipollone described the digital euro as an opportunity to establish greater European control over essential payment infrastructure. The comments come as the ECB prepares for a digital euro pilot in 2027, involving real transactions and participation from financial institutions and commercial payment providers.

Digital euro could strengthen Europe's payment sovereignty

Cipollone argued that Europe's dependence on external service providers presents challenges for maintaining reliable and independently managed payment systems. He compared the situation with other strategically important sectors where European countries have increasingly recognized the risks of relying on outside providers.

“In recent years Europe has learned that, for some essential services, we cannot rely only on third parties. We saw this with energy and we’re seeing it today with defense. And the same is true for payments,” he said. Although Cipollone did not identify specific companies, he emphasized that payment infrastructure is a critical component of Europe's economic stability and financial autonomy.

“The smooth functioning of payment systems is one of our responsibilities. If we are critically dependent on third parties, it’s not easy to ensure this smooth functioning,” Cipollone said. The digital euro could provide a European-controlled payment infrastructure, allowing the region to maintain greater independence in processing transactions while continuing to work with existing financial service providers.

However, Cipollone clarified that achieving payment sovereignty does not require excluding international companies from the European market. “It means having the power to choose and knowing that, for an essential service like payments, Europe can also rely on its own strength.”

The ECB official previously raised similar concerns during a public lecture in Latvia in April, when he warned that Europe's reliance on non-European payment providers represents a strategic vulnerability. At the time, he highlighted that approximately two-thirds of card transactions across the euro area are governed by companies based outside Europe.

The digital euro, he argued, could help address this imbalance by providing an additional payment infrastructure under European control.

ECB prepares digital euro pilot for 2027

The ECB is moving forward with preparations for a digital euro pilot scheduled to begin in 2027. Unlike earlier research and development activities, the upcoming pilot will involve real transactions conducted by employees of the ECB and national central banks.

The initiative is expected to provide practical insights into how a digital euro could function within Europe's existing payment ecosystem. A total of 36 market operators, including seven based in Italy, are collaborating on preparations for the pilot.

The ECB is also inviting e-commerce and mobile-commerce operators to participate, potentially expanding the range of payment environments in which the digital currency can be tested. The involvement of commercial operators could help assess the digital euro's potential applications in everyday transactions, particularly online purchases and mobile payments.

The pilot represents another step in the ECB's broader efforts to evaluate the technical and operational requirements of introducing a digital form of central bank money. However, participation in the pilot does not mean that the digital euro has received final authorization for public issuance.

Digital Euro launch depends on EU legislative approval

Despite ongoing technical preparations, the ECB cannot independently decide to issue a digital euro before the necessary European Union legislation is finalized. The ECB Governing Council will only be able to make a formal issuance decision after legislative negotiations in Brussels have concluded.

Cipollone expressed hope that the regulatory framework would be approved before the end of 2026, allowing the central bank to proceed with the next stage of the project. “We hope that the regulation will be adopted by the end of the year, enabling the ECB’s Governing Council to issue a formal decision on issuance,” Cipollone told Milano Finance.

The legislative process remains an important factor in determining the digital euro's future, as policymakers consider the legal framework needed to support its introduction. For the ECB, the project represents more than the development of a new digital payment method. It is also intended to strengthen Europe's ability to maintain essential financial infrastructure without depending entirely on external providers.

With pilot preparations advancing and legislative discussions continuing, the digital euro remains a significant component of Europe's efforts to develop a more independent and resilient payment system.

Sources:

https://cointelegraph.com/news/ecb-official-sees-digital-euro-tool-to-protect-eu-sovereignty

https://www.ecb.europa.eu//press/inter/date/2026/html/ecb.in261024~ee2ba73cf3.en.html

https://www.ecb.europa.eu/press/key/date/2026/html/ecb.sp260401~d9106c31db.en.html