A European Central Bank executive board member has warned that failing to create a pan-European digital payment option could leave Europe more fragmented and weaken its monetary sovereignty.
Piero Cipollone said the ECB’s proposed digital euro should be designed for everyday transactions and be transferable across banks. Speaking on an MNI Connect Webcast on Tuesday, Cipollone said alternative solutions offered by other entities could emerge if the central bank does not move ahead with a common digital payment framework.
According to Cointelegraph, he argued that a lack of such an option could increase fragmentation among tokenization platforms. Tokenization generally refers to representing assets or value digitally, potentially creating multiple systems that do not work smoothly with one another.
Banks would remain part of the system
Cipollone rejected the idea that a digital euro would replace commercial banks. Instead, he said the project should provide banks with infrastructure that helps them compete in digital payments and broaden the reach and uses of their own services.
“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 proposed digital euro is a central bank digital currency, or CBDC. It would be intended to complement physical cash rather than eliminate it, offering a digital way to make payments in euros. The ECB first proposed the project in October 2020.
The ECB has not yet decided whether to issue the currency. Cipollone said the legislative process is expected to conclude by the end of 2026. If the project proceeds, the central bank plans a 12-month pilot beginning in the second half of 2027, with a possible launch in 2029.
Privacy and resilience remain central issues
Supporters of the digital euro have presented it as a way to ensure access to a widely accepted European payment method, including during major disruptions. Cipollone made a similar argument in September 2025, saying the currency would allow Europeans to pay with a free digital means of payment at all times.
The project has also faced criticism. Opponents of CBDCs argue that a government-backed digital currency could give European authorities greater ability to monitor or control how people spend money. The debate over privacy comes as policymakers consider how a digital payment system should operate while preserving the role of banks and cash.
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