In a presentation at Fondazione ResPublica, European Central Bank Executive Board member Piero Cipollone outlined the Eurosystem’s strategy for an integrated European digital payments and finance market. The approach combines a retail digital euro, central bank money for wholesale tokenised transactions and stronger links between European and international instant payment systems, with the aim of preserving a central bank settlement anchor as payments and financial markets digitalise. The digital euro pilot will run for 12 months from the second half of 2027, while the ECB aims to be ready for a potential first issuance in 2029. Any issuance decision will follow adoption of the digital euro Regulation by EU co-legislators. Banks and other EU-licensed payment service providers would distribute the digital euro, supported by holding limits, no remuneration, no business holdings and compensation for distributors. For wholesale markets, Pontes began operating on Sept. 21 to connect distributed ledger technology platforms with TARGET Services for settlement in central bank money, with gradual enhancements planned over the next two years. The complementary Appia initiative is developing the longer-term design of an integrated tokenised financial ecosystem, with a blueprint planned for 2028. The ECB is also exploring links between TIPS and non-European fast payment systems and participating in the Bank for International Settlements-led Project Agorá.
2026-09-23European Central Bank
European Central Bank Executive Board member Piero Cipollone outlines integrated strategy for digital euro and tokenised settlement
European Central Bank Executive Board member Piero Cipollone outlined a payments strategy combining a digital euro, central bank settlement for tokenised assets and stronger cross-border instant payment links. A 12-month digital euro pilot is due to start in the second half of 2027, with potential issuance readiness targeted for 2029 subject to EU legislation. Pontes launched on Sept. 21, while Appia is preparing a longer-term tokenised finance blueprint for 2028.