FX.co ★ Europe needs digital euro to cut dependence on foreign payment systems

The European Union needs a digital euro to reduce reliance on non‑European payment systems and to preserve financial autonomy, ECB Executive Board member Piero Cipollone said in Rome.

He said Europe currently depends heavily on infrastructure located outside the region, and that without active measures, this dependence will only deepen. Payment systems are a critical part of the economy, Cipollone said. Failing to develop a domestic infrastructure would create a long‑term structural vulnerability.

In a joint interview with La Stampa and Bloomberg, Cipollone said a pilot phase for the digital euro could begin in 2027, with a possible launch no earlier than 2029.

He stressed that the project is not a reaction to external political or market pressures but flows directly from the ECB’s mandate. The regulator’s task is to ensure the smooth functioning of payment systems, and a high dependence on non‑European solutions in this area represents a systemic risk.

Although the digital euro is being developed primarily for use inside the eurozone, Cipollone said the infrastructure could be expanded over time to allow non‑euro‑area countries to connect.

Cipollone also raised concerns about stablecoins, warning that their proliferation could threaten financial stability in Europe. He urged a focus on building simple, reliable solutions within the European monetary framework, rather than adopting instruments advocated by Donald Trump and viewed with caution by the International Monetary Fund.

“The response is to guarantee an efficient combination of public and private money in euros,” Cipollone said.