In a speech, European Central Bank Executive Board member Piero Cipollone set out the ECB’s three-part response to the digitalisation of money and payments: prepare for a possible digital euro for retail use, enable settlement of DLT-based transactions in central bank money from September 2026, and link fast payment systems to improve cross-border payments. He presented the approach as the ECB’s answer to euro area reliance on a small number of non-European retail payment providers, the growth of tokenised markets, and persistent frictions in cross-border payments. For retail payments, the digital euro was described as a digital form of cash for day-to-day use rather than an investment product. It is intended to be non-interest-bearing, subject to holding limits, usable online and offline, and accepted across the euro area as legal tender. Cipollone also pointed to recent agreements with European Card Payment Cooperation, nexo standards and the Berlin Group so their technical standards can be used for acceptance of digital euro online payments at points of sale. In wholesale markets, the Pontes project will connect market DLT platforms to TARGET services so tokenised asset transactions can settle in central bank money, while cross-border work centres on interlinking fast payment systems, building on TIPS rather than creating a new global infrastructure. Next steps depend partly on legislation. If the Regulation on the establishment of the digital euro is adopted in 2026, a pilot exercise and initial transactions could start in mid-2027 and the digital euro could be ready for first issuance in 2029. The ECB also aims to present a comprehensive blueprint for a longer-term integrated tokenised financial ecosystem in 2028 under the Appia roadmap.
European Central Bank2026-05-28
European Central Bank sets out three part digital money strategy including possible digital euro and DLT settlement from September 2026
The European Central Bank outlined a three-part response to the digitalisation of money and payments: preparing for a possible retail digital euro, enabling settlement of distributed ledger technology-based transactions in central bank money from September 2026, and linking fast payment systems to improve cross-border payments. The digital euro would be non-interest-bearing legal tender for day-to-day use with holding limits. Subject to legislation, a pilot could start in 2027 with first issuance in 2029, and the ECB plans to present a blueprint for an integrated tokenised financial ecosystem in 2028 under the Appia roadmap.