The European Central Bank (ECB) has clarified that the digital euro will not replace physical cash but will instead complement it. Piero Cipollone, a member of the ECB’s Executive Board, emphasized that the digital euro will offer the same high level of security as cash and will be available at no cost to individuals. He noted that the ECB is simultaneously working on a new series of euro banknotes, proving its commitment to maintaining cash alongside digital options.
Cipollone suggested that the digital euro could be introduced by 2029, though he emphasized that the timeline depends on various factors beyond the ECB’s control. He highlighted the strong public support for the euro, with over 80% trust in the latest Eurobarometer survey, and the need to adapt to the digital age. The digital euro will be accessible via an app provided by the ECB, personal banks, or other payment service providers, allowing users to hold digital euros on their phones.
The digital euro aims to provide merchants with a cost-effective alternative to existing payment methods like Visa and Mastercard, which often impose high and opaque fees. Cipollone pointed out that the digital euro could halve the cost of accepting digital payments for small merchants and integrate with European private payment solutions, such as Satispay and Bancomat. Additionally, the digital euro will include offline payment capabilities, ensuring functionality even without an internet connection.
The ECB has already launched a pilot project and plans to begin testing the digital euro in less than 12 months. Legislative debates in Brussels are nearing completion, with the legislative text expected to be ready by the end of the year. Cipollone also noted the geopolitical motivations behind the acceleration of the digital euro project, emphasizing the need for Europe to reduce its dependence on foreign digital payment systems.