The digital euro: improving payments in the euro area

Piero Cipollone, Member of the Executive Board of the ECB, presented the digital euro project to the Italian Parliamentary Committee of Inquiry into the Banking, Financial and Insurance System.

He emphasized the importance of political scrutiny and informed debate for currency acceptance, especially for the digital euro, which aims to adapt to technological changes and preserve Europeans’ monetary sovereignty.

The ECB is modernizing wholesale payments using distributed ledger technologies (DLT) through initiatives like Pontes and Appia, with Pontes expected to launch in the third quarter of this year. It is also working to improve cross-border payments and address dependencies on non-European solutions.

The decline of cash and the dominance of international card schemes in retail payments pose challenges to Europe’s strategic autonomy. The digital euro aims to provide a sovereign, digital alternative that is accessible, secure, and privacy-preserving, usable online and offline, and inclusive for vulnerable groups.

For merchants, the digital euro could reduce reliance on high-fee international schemes, lower costs for small businesses, and enable instant payments with offline functionality. Payment service providers, especially banks, will remain central, with the digital euro designed to complement existing infrastructures and ensure financial stability.

Legislative progress includes the European Union’s agreement on the proposed digital euro regulation, which preserves key features such as legal tender status and offline capabilities. The European Parliament is also reviewing the proposal, with a positive outlook on its importance.

The ECB advocates a public-private partnership approach, creating a common European infrastructure for digital payments that fosters innovation and reduces dependence on foreign providers. Early benefits include standards for merchants and payment providers, enabling quicker adaptation and scaling.

European leaders have called for swift legislative action to accelerate the project, emphasizing the need to respond to global technological and geopolitical changes. The digital euro is positioned as a strategic tool to protect Europe’s monetary sovereignty and enhance its payment resilience.

For more information, visit the ECB’s official announcement: https://www.ecb.europa.eu//press/key/date/2026/html/ecb.sp260219~e9f59ca8c0.en.html