- European Central Bank Executive Board member Piero Cipollone stated the digital euro pilot, scheduled for next year, could provide the bloc with strategic sovereignty over its payment infrastructure.
- The push for a digital euro is driven by Europe‘s critical reliance on non-European third parties, who handle two-thirds of euro-area card transactions.
- The upcoming pilot will involve real transactions from central bank staff, with 36 market operators currently collaborating on preparations.
- A formal issuance decision by the ECB Governing Council is contingent on the conclusion of legislative negotiations in Brussels, expected by year-end.
European Central Bank Executive Board member Piero Cipollone stated in an interview that the digital euro, preparing for a pilot next year, has the potential to grant the bloc sovereignty over its payments infrastructure. Europe currently depends critically on external, non-European third parties for these services.
Cipollone drew parallels to other sectors where the lesson was recently learned. “We saw this with energy and we’re seeing it today with defense. And the same is true for payments,” he said.
In an April lecture in Latvia, Cipollone said that two-thirds of euro-area card transactions are governed by non-European companies. The digital euro aims to reduce this strategic vulnerability by providing a European-controlled payment infrastructure.
The official emphasized that sovereignty does not mean excluding third parties. “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 upcoming pilot will use real transactions from ECB and national central bank staff. A total of 36 market operators are currently collaborating on preparations.
Meanwhile, a formal decision from the ECB Governing Council remains pending on issuing the digital euro. “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.
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