A member of the European Central Bank’s executive board said Europe risks greater fragmentation across digital payment and tokenization platforms if the bloc does not develop a digital euro. Speaking on an MNI Connect Webcast on Monday, Piero Cipollone said the absence of a pan-European digital payment solution for everyday transactions could leave room for other providers to step in, which in turn could weaken Europe’s resilience and monetary sovereignty.
Cipollone said the ECB does not want a digital euro to replace banks. Instead, he described it as infrastructure that would allow banks to compete in the digital era and broaden the reach and use cases of their own payment offerings. He added that the central bank has not yet decided whether to issue the digital currency.
The legislative process is expected to conclude by the end of 2026, according to Cipollone. If the ECB proceeds, a 12-month pilot would begin in the second half of 2027, and issuance could follow in 2029. The ECB first proposed the digital euro in October 2020 as a central bank digital currency to complement cash. Critics have argued that a CBDC could give EU authorities tools to monitor and potentially control how residents spend money.
A European Central Bank executive board member said the absence of a digital euro could allow other players to fill the gap, a shift he warned may weaken Europe’s resilience and monetary sovereignty.
Speaking on an MNI Connect Webcast on Monday, Piero Cipollone said fragmentation across tokenization platforms could grow without a pan-European digital payment solution designed for every kind of day-to-day transaction. He said the ECB’s aim should be to build a digital euro that can be exchanged across banks and used for everyday payments.
Digital euro not meant to replace banks
"Our objective is not to take over the role of banks," Cipollone said. "On the contrary, the digital euro would equip banks with the infrastructure they need to compete in the digital age and help them expand the reach and use cases of their own solutions."
According to Cipollone, the ECB has not decided whether to issue a digital euro. He said the legislative process is expected to conclude by the end of 2026. If the central bank moves ahead, it would run a 12-month pilot starting in the second half of 2027, with possible issuance in 2029.
Project timeline and criticism
The ECB first proposed a digital euro in October 2020 as a central bank digital currency, or CBDC, intended to complement cash as a digital payment option.
Critics of the CBDC have argued that such a currency could give EU officials the means to surveil and potentially control how residents of the bloc spend their money.
Cipollone also said in September 2025 that "the digital euro will ensure that all Europeans can pay at all times with a free, universally accepted digital means of payment, even in case of major disruptions."
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