European Central Bank Executive Board member Piero Cipollone stated on Tuesday that the ECB plans to announce the technical standards for a potential digital euro by the summer, a move intended to help payment providers and merchants begin preparing their infrastructure ahead of any formal issuance decision.

Speaking to European Union lawmakers, Cipollone explained that once these standards are released, the ECB will collaborate with market participants to integrate them into payment terminals and related systems as early as possible.

He noted that finalizing the rulebook would allow new payment applications and devices to be developed with the required infrastructure already built in, positioning European companies to move quickly once legislation is approved. The ECB currently anticipates that the necessary legal framework could be in place by 2026.

Cipollone also outlined the timeline for testing, indicating that the digital euro pilot will run for 12 months starting in the second half of 2027. The pilot will focus on person-to-person and point-of-sale transactions within a controlled environment, with the aim of achieving technical readiness for a potential launch around 2029, pending legislative approval.

Costs weighed against long-term benefits

Previous ECB analysis suggested that implementing a digital euro could cost European banks between 4 billion and 6 billion euros over four years, equivalent to roughly 3% of their annual IT maintenance budgets, according to a Reuters report cited in February.

Cipollone emphasized that these costs should be evaluated in the context of longer-term advantages, including retaining more merchant fees within Europe and strengthening domestic payment systems. He reiterated that the digital euro is designed as a public payments infrastructure rather than a direct retail product. Under this model, banks and payment service providers would act as intermediaries, offering wallets and services built on top of the system.

The initiative also aims to reduce reliance on international card networks by enabling seamless switching between domestic payment schemes and the digital euro across the eurozone, including through co-badged cards and bank-issued wallets.

Integration with broader financial infrastructure

Cipollone clarified that the digital euro is intended to complement existing forms of money, such as cash and bank deposits, rather than replace them. Accessibility has also been a key consideration, with features like voice commands and large-font interfaces included in the reference app design to ensure broader usability.

He added that the ECB seeks to maintain central bank money as the foundational element of future financial markets. In this context, he pointed to initiatives such as the Pontes project, which explores the settlement of tokenized securities using central bank money across multiple distributed ledger platforms, and the Appia roadmap, which outlines plans for a tokenized European financial ecosystem.

In a separate speech on Monday, Cipollone also discussed how tokenized central bank money could function as a settlement asset for stablecoins and tokenized deposits.

Sources:

https://www.ecb.europa.eu/press/key/date/2026/html/ecb.sp260324~66f71f7577.en.html

https://cointelegraph.com/news/ecb-targets-summer-digital-euro-standards