The European Central Bank published a speech by Executive Board member Piero Cipollone setting out the policy case and current work programme for a digital euro as a digital complement to cash, alongside initiatives to ensure central bank money can support new payment technologies. The speech framed the digital euro as a response to the declining role of cash in retail payments and the euro area’s reliance on non-European card and payment infrastructures, and linked progress on issuance to the availability of a robust legislative framework. On wholesale settlement, the Eurosystem’s strategy for settling distributed ledger technology transactions in central bank money comprises two initiatives, Pontes and Appia, with Pontes described as an initial cash settlement solution targeted for launch in the third quarter of 2026 and Appia intended to develop a longer-term vision for Europe’s digital finance ecosystem. The speech also pointed to work to improve cross-border payments by interlinking Europe’s fast payment system with those of other countries, and cited stablecoin growth as a factor in preserving the role of euro-denominated money in payments. For retail payments, it highlighted that almost two-thirds of euro area card-based transactions are carried out by non-European companies and that in 13 euro area countries in-store payments depend entirely on international card schemes, while in Cyprus card payments accounted for 74.5% of all cashless transactions in the first half of 2025. Next steps referenced in the speech include an upcoming European Central Bank call for interest for payment service providers to participate in a digital euro pilot exercise. On the legislative track, it welcomed the Council of the European Union’s agreement on a negotiating position for the proposed digital euro Regulation, noting it preserves core elements such as legal tender status, mandatory distribution and acceptance, and online and offline functionality, while introducing targeted adjustments reflecting concerns raised by banks; the European Parliament was described as expected to reach its position in May 2026.
European Central Bank 2026-02-06
European Central Bank outlines digital euro roadmap with planned pilot call and Q3 2026 target for Pontes DLT settlement
European Central Bank Executive Board member Piero Cipollone discussed the digital euro's policy rationale, highlighting its role as a digital cash complement and reducing reliance on non-European payment infrastructures. He detailed Eurosystem initiatives for distributed ledger technology, cross-border payment improvements, and legislative progress for the digital euro Regulation, with a pilot exercise call for payment service providers forthcoming.