Piero Cipollone, a member of the European Central Bank's Executive Board, told audiences in Rome that Europe must develop a digital euro to lessen its current dependence on payment networks located outside the continent. Cipollone warned that without such a step, the reliance on non-European payment systems will grow and leave the economy exposed.
"Today, Europe is significantly reliant on non-European payment systems and if we don’t do anything this reliance will increase," Cipollone said during his speech. He added that payment arrangements are "critical infrastructure for the functioning of the economy and putting it off would mean accepting a structural vulnerability."
In a joint interview with La Stampa and Bloomberg, Cipollone provided a timeline for the project, saying the digital euro could move into a pilot phase in 2027, with possible issuance beginning in 2029. Those dates outline the ECB's current planning horizons rather than final commitments.
Cipollone emphasized that the move toward a digital euro is rooted in the ECB's responsibility to maintain reliable payment systems, not as a direct reaction to external developments. "The ECB must guarantee the proper functioning of payment systems and such a marked dependency on extra-European systems in such a crucial sector represents a systemic risk," he said.
While the design of the digital euro is mainly intended for use within the euro area, Cipollone noted the system's architecture could be adapted later to permit access by countries outside the eurozone, should policymakers decide to broaden its reach.
The ECB official also raised concerns about stablecoins, arguing they could "threaten financial stability" in Europe. He contrasted these instruments with a euro-based solution, noting that stablecoins have supporters such as Trump but are treated with caution by the IMF. Cipollone suggested that Europeans should be offered "simpler, more reliable alternatives."
On the question of how to structure payments in the future, Cipollone said the appropriate response is to "guarantee an efficient combination of public and private money in euros," indicating a model that would integrate central bank-backed digital currency alongside private payment solutions.
This reporting focuses on the details and timeline provided by the ECB official and does not add commentary or new facts beyond his statements.