European Central Bank (ECB) Executive Board member Piero Cipollone has emphasized the importance of a digital euro in safeguarding the European Union’s sovereignty over its payment infrastructure. In an interview with Italy’s Milano Finance, Cipollone highlighted that the bloc’s current reliance on external, non-European third parties poses challenges to ensuring smooth payment operations. The digital euro, set for a pilot next year, aims to reduce this dependency and provide a European-controlled payment system.
The pilot program will involve real transactions by ECB and national central bank staff, with 36 market operators, including seven from Italy, collaborating on preparations. The ECB is also inviting e-commerce and mobile-commerce operators to participate. Cipollone stressed that while sovereignty does not mean excluding third parties, it ensures Europe has the power to choose and rely on its own strengths for essential services like payments.
In an earlier lecture, Cipollone noted that two-thirds of euro-area card transactions are governed by non-European companies, creating a strategic vulnerability. The digital euro could mitigate this risk by offering a European-controlled alternative. The ECB Governing Council can only decide on issuing a digital euro after legislative negotiations in Brussels conclude. Cipollone expressed hope that the regulation will be adopted by the end of the year, enabling a formal decision on issuance.