ECB discusses digital euro development and implementation plans

In an interview with Corriere della Sera, Piero Cipollone, Member of the ECB Executive Board, discussed the development of the digital euro. He clarified that the digital euro will complement cash, not replace it, and will offer high security at no cost to users.

Cipollone indicated that the digital euro could be introduced as early as 2029, with pilot projects starting in 2027. The project is supported by over 80% of Europeans, according to recent surveys, reflecting strong public trust in the euro.

The digital euro will be accessible via a mobile app, a card, and offline payment methods, ensuring usability during power or internet outages. It aims to reduce merchant fees and provide a European alternative to existing private payment solutions, such as Visa, Mastercard, Satispay, and PayPal.

Legislative preparations are underway in Brussels, with the legislative text expected by the end of the year. The ECB has already signed agreements on technical standards and received applications from banks, including Italian institutions, to participate in pilot testing.

The initiative is driven partly by geopolitical considerations, including energy dependency and strategic autonomy. Cipollone emphasized the importance of a European digital payment infrastructure to ensure security, resilience, and independence in financial transactions.

Merchants will need to update their systems to accept the digital euro, which will be integrated seamlessly into existing payment cycles. The ECB is also developing an innovation platform to enable advanced services based on the digital euro.