ECB official discusses the digital euro’s role and future prospects

In an interview conducted by Takerou Minami on November 26, 2025, Piero Cipollone, Member of the Executive Board of the European Central Bank (ECB), discussed the importance of the digital euro for Europe.

He highlighted that the decline in cash usage limits digital payments with central bank money, which currently exists only as physical cash. A digital euro would provide a European-wide digital payment solution, reducing reliance on non-European payment schemes and enhancing the resilience and strategic autonomy of the euro area.

Cipollone described the digital euro as a natural evolution of payment methods, from cheques to mobile payments, emphasizing its role in maintaining monetary sovereignty and financial stability. He noted that stablecoins, especially euro-denominated ones, pose risks due to their collateral dependence and potential for runs.

The ECB aims to address various use cases, including person-to-person, e-commerce, and government payments. Benefits for users include simplicity and offline payment capabilities, while merchants could see reduced service costs. About 66% of Europeans interested in the digital euro are likely to use it, pending further campaigns.

Legislation for the digital euro is expected to be adopted in 2026, with the European Commission having proposed the regulation in June 2023. The ECB is working on cybersecurity, resilience, and anti-money laundering measures, ensuring privacy through encrypted codes and anonymization.

Holding limits, such as €3,000, are considered to prevent financial stability risks, with reassessment planned closer to issuance. The ECB is open to sharing technology and knowledge with other central banks, including the Bank of Japan, and collaborates on cross-border payments projects.

Regarding monetary policy, Cipollone stated that the ECB’s deposit rate remains at 2%, with decisions based on current economic data and risks. He emphasized that the ECB remains cautious about rate cuts due to ongoing risks like tariffs and global economic uncertainties.

On foreign exchange, the ECB adheres to G7 commitments to market-determined rates and closely monitors potential interventions, including Japan’s possible support for the yen.