Europe’s evolving money system aims to preserve payment freedom

Piero Cipollone, Member of the Executive Board of the European Central Bank (ECB), addressed the Committee on Economic and Monetary Affairs of the European Parliament regarding the digital euro.

He highlighted ongoing progress in negotiations on the Single Currency Package and emphasized the importance of ensuring access to cash, which remains a core function of the central bank. The ECB supports the legislative proposals for the legal tender of cash and the digital euro as a unified package, reinforcing that both are forms of the same money using different technologies.

The ECB is redesigning euro banknotes, with new designs based on European culture or rivers and birds, expected to be issued in the early 2030s with enhanced security features and sustainable materials.

Regarding standards, the ECB has signed cooperation agreements with three European standard-setting organizations to establish open standards for the digital euro. These standards will facilitate seamless, secure, and cross-border payments within the euro area and support private payment solutions.

The ECB has also prepared for a piloting exercise scheduled to start in the second half of 2027. Over 50 applications from payment service providers have been received for participation, with selected PSPs announced in July. The exercise aims to validate infrastructure functionality and gather participant feedback.

The ECB emphasizes that completing the legislative framework by January 1, 2027, coinciding with the 25th anniversary of euro banknotes and coins, will symbolize the integration of cash and digital euro as two sides of the same coin, ensuring payment freedom for Europeans.

For more information, visit the official ECB press release at the provided URL.