European Central Bank (ECB) Executive Board member Piero Cipollone reviewed progress on modernising public money in a keynote at the eighth International Conference of Regional Card Schemes and Retail Financial Market Infrastructures in Tirana. The Eurosystem’s approach combines banknote renewal, a digital euro, central bank money settlement for tokenised assets and international links between fast payment systems. For banknotes, the Governing Council expects to choose the final design concept around the end of 2026. New notes should enter circulation gradually from the early 2030s, while existing notes remain valid. The digital euro pilot remains planned for the second half of 2027, running for 12 months with 36 selected payment service providers. Readiness for potential first issuance in 2029 remains conditional on legislation being concluded by the end of 2026. Banks and supervised payment service providers would distribute the digital euro and retain customer relationships, while common infrastructure and open standards would enable private payment services to expand across the euro area. Basic consumer use would be free, with online and offline payments. Holdings would earn no interest and would be capped, but linked bank accounts would allow payments above the holding limit. In wholesale markets, Pontes, operational since Sept. 21, has settled a EUR 1 billion transaction in European Stability Mechanism bonds issued on distributed ledger technology (DLT). The service connects market DLT platforms with the Eurosystem’s TARGET Services, enabling settlement in central bank money. Features and operating hours will expand toward continuous availability in 2028. The complementary Appia project targets a 2028 blueprint for the architecture, standards and governance of an integrated tokenised financial ecosystem. Internationally, work to connect TARGET Instant Payment Settlement (TIPS) with India’s Unified Payments Interface is advancing, while links with systems including those of Switzerland and Brazil remain exploratory. EU and Canadian leaders have also supported work toward connecting their instant payment systems.
ECB’s Cipollone reviews payments strategy and reports EUR 1 billion Pontes settlement
ECB Executive Board member Piero Cipollone reviewed banknote renewal, digital euro preparations, tokenised settlement and international payment links in a Tirana keynote. The digital euro pilot remains planned for the second half of 2027, with potential issuance readiness in 2029 conditional on legislation concluding by the end of 2026. Pontes has settled a EUR 1 billion European Stability Mechanism bond transaction, with service expansion toward continuous availability planned for 2028.