ECB’s Cipollone casts digital euro as safeguard for European sovereignty

European Central Bank Executive Board member Piero Cipollone says a digital euro would strengthen Europe’s sovereignty over payments by providing an alternative to infrastructure controlled outside the region. Preparations envisage real transactions in 2027 and possible issuance in 2029, subject to legislation.

In an interview with Milano Finanza published by the ECB on October 24, Cipollone described payments as essential infrastructure. He said sovereignty meant retaining the ability to choose, rather than excluding outside providers, and argued that Europe needed its own alternative.

His argument centres on bringing the public-money option offered by cash into digital commerce. Banknotes cannot be used online, he noted, while dependence on non-European payment operators extends to physical shops in much of the euro area.

The ECB’s pilot plans provide the next practical step. According to its project information, a 12-month trial is expected to begin in the second half of 2027, testing a beta version of the digital euro before any potential wider issuance.

Participants will include 36 payment service providers licensed in the euro area, selected merchants and staff from the ECB and 19 national central banks. Everyday transactions, including purchases and person-to-person payments, will help assess whether the infrastructure is robust, usable and capable of operating at scale.

That trial is not a public launch or a commitment to issue the currency. The ECB says its preparation work will remain flexible to accommodate the legislative process, with readiness for potential issuance during 2029 premised on adoption of the digital euro regulation in 2026.

The broader legal framework also addresses the future of physical money. In its December 2025 negotiating position, the Council of the European Union backed proposals covering potential digital euro issuance alongside measures intended to safeguard the acceptance and availability of cash.

The Council described the proposed digital euro as a public facility directly backed by the ECB. Its stated purpose includes preserving central bank money as an anchor for the payments system, placing the initiative within the existing monetary framework rather than presenting it simply as another payment application.

In a separate March 2026 ECB banking-supervision blog, Cipollone and fellow Executive Board member Frank Elderson portrayed the project as an investment in monetary sovereignty and financial resilience. They also argued that it could support innovation in retail payments while preserving financial stability.

The immediate dependency remains legislative approval. Cipollone said the ECB’s Governing Council could decide on issuance only after negotiations conclude, while banks, payment operators and merchants would still need time to adapt their systems before a rollout.