Cipollone says digital euro would give EU payments sovereignty

Key points

• Piero Cipollone says the ECB is on track to test real digital euro transactions in 2027 and could roll it out as early as 2029.
• The ECB wants EU legislation adopted by the end of the year so its Governing Council can formally decide on issuance.

Piero Cipollone says the digital euro would give the EU sovereignty over payments infrastructure that now depends on non-European third parties. The ECB executive board member made the case in an interview with Italy's Milano Finance, which the central bank published on 24 October.

Cipollone said the bloc's reliance on outside providers makes it hard to guarantee that payments run smoothly. He compared payments to energy and defence, areas where he said Europe has learned it cannot depend only on third parties. Sovereignty, he added, means being able to choose and knowing Europe can rely on its own strength for an essential service.

The digital euro is due for a pilot next year using real transactions by ECB and national central bank staff. Cipollone said testing is on track for 2027, with rollout possible as early as 2029.

The ECB Governing Council can decide on issuing the digital euro only after legislative talks in Brussels conclude, and Cipollone hopes the regulation is adopted by the end of the year.

What to watch: Cipollone hopes EU lawmakers will adopt the digital euro regulation by the end of the year, after which the ECB Governing Council can take a formal decision on issuance.

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