Eurosystem outlines comprehensive strategy for future European payments

The Eurosystem has published its comprehensive payments strategy, outlining its vision for the evolution of Europe’s payments amid rapid technological change. It complements the Eurosystem’s cash and retail payments strategies, covering wholesale, business-to-business, and cross-border payments.

The strategy considers the adoption of new technologies such as tokenisation and distributed ledger technology, ensuring innovation progresses while central bank money remains the foundation of trust and stability.

According to Piero Cipollone, a member of the ECB’s Executive Board, “Payments are critical for society, and they are changing rapidly. The ECB is working to ensure that retail, wholesale, and cross-border payments remain reliable, fast, competitive, and open for innovation.”

The strategy has four main aims: to maintain the role of central bank money in markets; to make Europe’s payment system more robust and autonomous; to promote integrated, innovative, and competitive payments; and to support the international role of the euro.

It recommends seizing the potential of tokenisation, with a focus on tokenised deposits and stablecoins that are EU-governed, euro-denominated, and properly regulated. For wholesale transactions, central bank money should remain central, complemented by private settlement assets.

For retail payments, the strategy highlights the role of the digital euro in developing pan-European private retail payment solutions, emphasizing the synergy between the digital euro and private initiatives.

The strategy consolidates all major Eurosystem initiatives, including the digital euro, Pontes, and Appia, to ensure central bank money adapts to the digital age while supporting private sector innovations in wholesale and retail payments.

It also supports efforts to keep euro cash widely available and accessible. The ECB is developing new euro banknotes with updated designs and reinforcing the legal tender status of cash.

The Eurosystem will continue monitoring market and technological developments to adapt its strategy as needed, ensuring secure and innovative payments across Europe.