The European Central Bank pushes forward with its Digital Euro project. The initiative addresses growing concerns about payment system dependencies on non-European providers.
Piero Cipollone spoke to El País about the Digital currency. The ECB Executive Board Member emphasized Europe's need for payment independence.
Why Europe Needs Its Own Digital Money
The ECB identifies critical gaps in European payment systems. Cash cannot facilitate digital transactions in e-commerce, which now represents over one-third of daily transaction values.
According to the ECB's official interview, cash usage dropped significantly. It fell from 40% of transaction values in 2019 to just 24% in 2024.
Cipollone explained the core mandate. The ECB must provide payment methods and ensure smooth payment system functioning across Europe.
Geopolitical Tensions Fuel Digital Euro Push
Rising global tensions strengthen the Digital Euro's strategic importance. Cipollone acknowledged that geopolitical risks increase the need for European payment infrastructure.
"All these potential geopolitical tensions and the weaponisation of every conceivable tool clearly increase the level of risk," Cipollone stated. The Digital currency Euro ensures a European payment system built on European technology and infrastructure.
The currency will function as legal tender. Any merchant accepting digital payments must accept the Digital Euro, creating a unified European payment standard.
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Private Sector Integration Remains Key
The ECB welcomes private sector payment solutions alongside the Digital Euro. Cipollone emphasized that Europeans should choose between public and private payment options.
The Digital currency will establish a single, open standard. This framework enables private sector companies to develop pan-European payment systems more easily.
Current payment fragmentation creates multiple standards. Each payment service provider requires merchants to adopt different systems, fragmenting the European market.
Offline-Only Proposal Faces Criticism
European Parliament voices suggested limiting the Digital currency to offline mode. Cipollone questioned this approach's practicality for e-commerce transactions.
The ECB designed the Digital currency Euro specifically to address e-commerce payment gaps. An offline-only solution cannot solve digital payment challenges effectively.
The central bank positions the Digital Euro as public money in digital form. This safeguards money as a public good while maintaining European payment sovereignty.
