In an introductory statement to the European Parliament’s Committee on Economic and Monetary Affairs, European Central Bank Executive Board member Piero Cipollone argued that a digital euro is needed to strengthen Europe’s strategic autonomy in day-to-day payments by reducing reliance on non-European payment providers, while complementing cash as Europe’s only sovereign means of payment. He also reiterated the Eurosystem’s commitment to keep cash widely available and welcomed the proposed EU regulation on the legal tender status of euro banknotes and coins. Cipollone highlighted that consumers in 13 euro area countries rely solely on international card schemes or mobile solutions for in-shop payments and that domestic card schemes often depend on co-badging for cross-border payments, leaving Europe exposed to high fees, data outflows and potential future dependence on foreign stablecoins. He framed the digital euro as a public-private partnership anchored in EU legislation, designed to be universally accepted across the euro area, free for basic use, privacy-protecting and available offline, with merchant charges by payment service providers subject to a cap under the European Commission’s draft proposal. On cash, the ECB argued the legal tender regulation should prohibit unilateral exclusions of cash by retailers or service providers and require Member States to hold the banking sector responsible for essential cash services. On delivery, the ECB reported that the digital euro project is progressing according to schedule and nearing the end of its preparation phase, with a rulebook being developed with market participants that could be finalised and reused once legislation is adopted, even before any potential issuance. Work continues on a holding-limit calibration methodology based on the draft legislation’s pillars of usability, monetary policy and financial stability, with results targeted for publication in the summer; innovation partnership testing drew around 100 applicants, while procurement for framework agreements with potential service providers and user research (findings expected in mid-2025) remain under way.
European Central Bank 2025-04-08
European Central Bank says digital euro project is on track and urges lawmakers to advance digital euro and cash legal tender rules
European Central Bank Executive Board member Piero Cipollone stressed the need for a digital euro to boost Europe's payment autonomy and reduce reliance on non-European providers. The digital euro is planned as a public-private partnership, universally accepted, free for basic use, privacy-protecting, with capped merchant charges. The project is on schedule, with a rulebook in development and ongoing work on holding-limit calibration and innovation partnership testing.