ECB warns digital euro alternatives could fragment European payments

Reading Time: < 1 minute

European Central Bank (ECB) executive board member Piero Cipollone has warned that Europe could face greater fragmentation in digital payments without a pan-European digital euro.

Speaking on an MNI Connect webcast, Cipollone said other entities could fill the gap with separate payment solutions, potentially weakening Europe’s monetary sovereignty and resilience. He said the ECB wants a digital euro that can be used across banks for everyday payments.

Cipollone stressed that the project would not be intended to replace banks. Instead, he said it could provide infrastructure for banks to develop their own digital payment services.

The ECB has not yet decided whether to issue a digital euro. It aims to complete the legislative process by the end of 2026, with a 12-month pilot potentially starting in the second half of 2027 and a possible launch in 2029.