- Digital euro ensures European payment autonomy amid declining cash usage.
- Cross-border design strengthens unity and trust in central bank money.
- Resilient infrastructure secures payments, including offline and crisis scenarios.
At a Baltic conference on digital money, ECB Executive Board member Piero Cipollone argued that a digital euro will protect Europe’s financial independence and strengthen public trust.
He told policymakers that Europe must adapt quickly as the use of cash declines and digital payments become dominant. He said the project is not about replacing cash but about preserving freedom, security, and payment sovereignty in Europe.
Why Does Europe Need a Digital Euro?
Cipollone explained that cash remains the anchor of trust, but its share in everyday payments is shrinking. From 2019 to 2024, cash transactions in the euro region fell sharply in both volume and value. As this happened, Europeans became more dependent on global card networks based outside Europe. That dependency, he said, creates risks for payment sovereignty, consumer costs, and competition.
Related: European Central Bank (ECB) Sets Sights on Ethereum and Solana for Digital Euro Rollout
The digital euro would give Europeans a sovereign payment option accepted across borders. It would guarantee that people can still pay with central bank money even if cash use continues to fall.
When Will the Digital Euro Launch?
The ECB is targeting 2029 as the realistic year for launch. Before then, new digital euro trials in 2026 will test use cases with private partners. Those experiments will include automated payments such as public transport and refunds.
How Will the Digital Euro Work in Practice?
The digital euro will include offline payment functionality, so transactions can continue even without internet or mobile coverage. Its infrastructure will be spread across regions to ensure continuity during cyberattacks or outages.
Users will access a dedicated ECB wallet app and switch between providers without losing service. The design will also impose holding limits and non-remuneration rules to avoid destabilizing bank deposits.
Digital Euro for European Unity
Cipollone reminded listeners that the euro is more than a medium of exchange. It symbolizes unity, identity, and trust. He said the digital euro would extend this role into the digital economy, helping Europeans share a common infrastructure in an age of fragmented payment systems.
Related: ECB President Christine Lagarde Defends Digital Euro Ahead of October’s Launch
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