ECB official sees digital euro as key to protecting EU ‘sovereignty’
European Central Bank Executive Board member Piero Cipollone said the digital euro, set for a pilot next year, could give the bloc sovereignty over payments infrastructure that currently relies on external, non-European third parties.
The digital euro is designed to be a central bank-issued digital currency, a project that has been under discussion for several years as part of a broader move toward a cashless society.
The upcoming pilot will use real transactions by ECB and national central bank staff, with 36 market operators, including seven from Italy, collaborating on preparations.
The ECB is also inviting e-commerce and mobile-commerce operators to participate in the pilot.
Strategic Vulnerability
Cipollone said that Europe’s reliance on non-European payment providers creates a strategic vulnerability, noting that two-thirds of euro-area card transactions are governed by non-European companies.
“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 emphasized that sovereignty does not mean shutting third parties out, but rather having the power to choose and knowing that, for an essential service like payments, Europe can also rely on its own strength.
Next Steps
“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,”
The ECB Governing Council can only decide on issuing a digital euro after legislative negotiations in Brussels conclude.
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