European Central Bank Executive Board member Piero Cipollone said on Oct. 6 that the digital euro would help European banks improve their competitive position. Speaking on Tuesday, he said the project is not only meant to address weaknesses in Europe’s current payments system, but also to serve as a platform for future innovation. In his view, new opportunities are continuing to emerge, and European payment service providers should have the capacity to capture them and build a strong competitive edge. The ECB plans to formally launch the digital euro in 2029, with a pilot phase scheduled to begin next year. The project is also intended to protect Europe’s monetary sovereignty. European policymakers have been concerned by the region’s heavy reliance on U.S. payment companies such as Visa and Mastercard, while the continued growth of dollar-pegged stablecoins has added to those concerns.
On Oct. 6, European Central Bank Executive Board member Piero Cipollone said the digital euro would help European banks become more competitive.
Speaking on Tuesday, Cipollone said the digital euro project is not just about fixing current shortcomings in Europe’s payments system. He said, "This is also an opportunity to think about the future and provide a platform for innovation. New opportunities are constantly emerging, and we want to make sure European payment service providers are fully able to seize them and build a strong competitive advantage."
Digital euro timeline
The European Central Bank plans to officially launch the digital euro in 2029 and start a pilot phase next year.
Policy rationale
The project is aimed at safeguarding Europe’s monetary sovereignty. Europe currently relies heavily on U.S. payment companies including Visa and Mastercard. At the same time, the growth of dollar-pegged stablecoins has added to concerns among European policymakers.
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