The European Central Bank is pressing its case for a digital euro as Europe looks to reduce its dependence on foreign payment networks. ECB Executive Board member Piero Cipollone says a pilot using real transactions will begin in 2027, but a full launch remains dependent on legislation.
In an interview published October 24 and widely covered on October 26, Cipollone described payment infrastructure as a matter of economic resilience. His comments come as EU institutions continue debating the rules needed to issue a central bank digital currency.
Further reading: Browse our regulatory source tracker for official EU and other crypto-asset policy resources. The digital euro proposal is separate from MiCA.
Digital euro is about payment choice, ECB says
According to the ECB’s published interview, about two-thirds of online card payments in Italy use non-European card schemes. Cipollone argued that Europe should have a payment option it can operate independently if outside systems face disruptions.
He also argued that smaller merchants can face processing fees up to four times those paid by large businesses. The ECB expects a common European payment option, alongside proposed fee limits, to strengthen competition. Lower fees, however, would depend on the final rules and actual market adoption.
What happens in the 2027 pilot?
The ECB plans to test digital euro transactions involving staff at the central bank and national central banks in 2027. Cipollone said 36 market operators, including seven from Italy, are helping prepare the project.
Possible uses include person-to-person transfers, retail purchases and online payments. The pilot is intended to test technical reliability and user experience, not to signal that the digital euro is already available to the public.
The central bank is also exploring offline payments. Under the proposed design, two nearby devices could exchange value without an internet connection, allowing purchases during network outages. The project would place limits on wallet holdings, while permitting larger purchases to be completed using a linked bank account.
A 2029 rollout is not yet approved
Cipollone said a 2029 rollout could be possible if the EU completes the relevant legislative process in time. The ECB Governing Council cannot make a final issuance decision until the legislation has been agreed.
That distinction matters for readers comparing a potential digital euro with privately issued stablecoins. A digital euro would be central bank money distributed through authorized intermediaries, whereas stablecoins are typically obligations of private issuers with different legal and reserve arrangements.
For broader coverage of payments and tokenized money, see BlockBriefing’s report on Aviva Investors’ tokenized sterling fund share class.
Source: ECB interview with Piero Cipollone, conducted October 21 and published October 24, 2026.
Illustrative photo credit: Kai Pilger / Unsplash.
