ECB Official Warns Digital Euro Absence Could Fragment Payments

European Central Bank executive board member Piero Cipollone warned that Europe could face more fragmented payment systems and weaker monetary sovereignty without a digital euro. He called for a pan-European digital payment system for everyday transactions.

During an MNI Connect webcast on Monday, Cipollone described the lack of a common digital payment option as a risk that could increase fragmentation across tokenization platforms. He said a digital euro should be exchangeable across banks and usable for a broad range of daily payments.

“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.”

The ECB has not decided whether to issue the central bank digital currency. The legislative process is expected to conclude by the end of 2026. If the project is approved, the ECB plans to run a 12-month pilot beginning in the second half of 2027. Issuance could follow in 2029.

The ECB first proposed the digital euro in October 2020 as a payment option to complement cash. The planned currency would provide a common payment method across the euro area and reduce reliance on national and private payment systems.

Critics of central bank digital currencies have raised concerns that a digital euro could let European authorities monitor or restrict residents’ spending. In September 2025, Cipollone described the proposed currency as a free and widely accepted payment method that would remain available during major disruptions.