In an interview, European Central Bank Executive Board member Piero Cipollone reported that the ECB’s digital euro innovation platform with 70 partners has produced “very encouraging” results and said a second round of private-sector collaboration will be organised over the coming months. He framed the digital euro as a Europe-wide means of digital payment intended to retain key features of cash, including free use for common payments, privacy and acceptance across the euro area wherever digital payments are accepted. Examples tested on the platform included online on-delivery payments and digital receipts to simplify returns and warranty activation. The design elements highlighted included online and offline functionality, affordability for merchants, and safeguards intended to limit deposit outflows, including a pre-launch process for setting a maximum individual holding amount, non-remuneration and the ability to link digital euro wallets directly to bank accounts. Cipollone also argued that widespread use of predominantly dollar-denominated stablecoins could heighten dependence on non-European systems and create sovereignty, financial stability and monetary policy risks, positioning the digital euro as a “stable and sovereign” alternative. Issuance would follow EU legislative approval: he noted calls for the Council of the European Union to reach consensus by end-2025 and an intention by the European Parliament to set out its position by spring 2026, after which trilogue negotiations could begin. The ECB expects banks and businesses would need preparation time after the final regulation, with a launch “around two and a half years” after legislation is passed, implying a mid-2029 start if legislation is ready by end-2026. On monetary policy, he reiterated that the deposit facility rate is 2% after the Governing Council kept rates unchanged, with future decisions data-dependent, and said the ECB had revised its 2025 growth forecast to 1.2% from 0.9% in the June projections.
European Central Bank 2025-09-25
European Central Bank plans second private-sector collaboration round for the digital euro and outlines an indicative mid-2029 launch path
ECB Executive Board member Piero Cipollone reported positive results from the digital euro innovation platform with 70 partners and announced plans for more private-sector collaboration. The digital euro aims to retain cash-like features, including free use, privacy, and euro area-wide acceptance, addressing online/offline functionality and deposit outflow safeguards. Cipollone highlighted risks of reliance on dollar-denominated stablecoins and positioned the digital euro as a stable alternative, with issuance contingent on EU legislative approval and a potential mid-2029 launch.