The digital euro and Europe’s strategic payment independence

Piero Cipollone, Member of the Executive Board of the European Central Bank (ECB), delivered a public lecture hosted by the Stockholm School of Economics in Riga and Latvijas Banka. He emphasized the importance of the digital euro in strengthening Europe’s resilience and strategic autonomy in payments.

He highlighted Latvia’s adoption of the euro in 2014 as a strategic decision to reinforce sovereignty through shared institutions. Cipollone pointed out that resilience depends on robust infrastructure, citing energy dependence as an example of vulnerability that must be addressed in payments.

The lecture outlined how dependence on non-European payment infrastructure creates risks such as disconnection, extraterritorial reach, and market power concentration. Currently, two-thirds of euro area card transactions are governed by non-European companies, with dependence on international schemes increasing costs and limiting competition.

The digital euro is presented as a solution to these vulnerabilities. It will be a legal tender digital cash, accessible online and offline, issued and governed by European institutions, ensuring privacy, resilience, and reduced dependence on external providers. It aims to lower transaction costs, foster innovation, and support European payment companies.

The ECB’s comprehensive payments strategy also includes developing tokenised central bank money and a resilient ecosystem for wholesale transactions. Projects like Pontes and Appia will facilitate tokenised assets and a European digital financial infrastructure, reducing reliance on foreign assets and platforms.

In conclusion, Cipollone stressed that the digital euro and the new strategy are vital for maintaining monetary sovereignty in a fragmented world. The next steps involve legislative completion and technical preparations for issuance, ensuring Europe’s payment infrastructure remains independent and resilient.

More information is available at the official ECB press release: ECB press release.