Increasing geopolitical tensions are bolstering the case for a European digital payment system under local control, according to Piero Cipollone, a member of the executive board of the ECB, in an interview with El Pais.
He described CBDC as “state money in virtual form,” necessary to complement cash and address the fragmentation of the payment landscape in the region.
The official provided specific data: in 2024, the share of fiat in the value of everyday transactions fell to about a quarter (24%), significantly lower than the 2019 figure of 40%.
According to him, the situation compels the ECB to evolve in its methods of providing money as a public good to eurozone citizens.
Cipollone directly linked this task to the geopolitical context. He warned that “the instrumentalisation of any possible resource” and rising global tensions make the need for a European retail payment system, built on local technologies and infrastructure, even more pressing.
Such a system should be capable of meeting all of Europe’s payment needs without creating “excessive dependence” on foreign schemes, according to the ECB chair.
He also highlighted the status of the digital euro as legal tender. Cipollone stated that any vendor already accepting digital payments “will be obliged to accept” this new form, effectively implying a mandatory regime for CBDC transactions.
Digital Euro as a Catalyst for a Unified EU Payment Space
Cipollone rejected proposals to delay the project in anticipation of a purely corporate solution, reminding that “the ECB has been urging the private sector for years to develop a pan-European solution,” which has yet to materialise.
He is convinced that the launch of the digital euro with a single open standard, mandatory for acceptance by all merchants, will not displace private companies. On the contrary, it will incentivise banks and fintech firms to build a truly pan-European payment layer.
Cipollone also opposed the idea of limiting the digital euro to an offline format. According to him, one of the project’s key goals is to address the lack of a European alternative for online payments in e-commerce.
His statement came in the wake of an open letter dated January 11, signed by 70 economists and politicians. The authors urged EU lawmakers to “prioritise public interests” concerning the digital euro.
Moreover, they warned that further delays would only deepen Europe’s reliance on dominant foreign and private payment systems.
ECB’s Preparatory Phase
The ECB is currently conducting preparatory work on the digital euro project: developing a set of rules, technical architecture, and functionality before making a final issuance decision.
According to the regulator, the design of the CBDC represents a publicly accessible, pan-European payment solution that ensures seamless access to central bank money—akin to cash. Tools such as holding limits and tiered remuneration will be applied to maintain financial stability.
The project aims to balance innovation, privacy, and the preservation of banks’ key role as intermediaries in the retail payment system, noted ECB executive board member Philip Lane in January.
However, several commercial banks and politicians criticise the digital euro. They fear potential displacement of deposits, operational costs, and uncertain demand from retail users.
In March, ECB analysts concluded that eurozone citizens show little interest in the virtual form of the European currency and see limited value in CBDC.
Back in March, a failure in the ECB’s payment system raised new doubts among lawmakers about the regulator’s ability to implement a national digital currency project.