ECB's Cipollone Frames Digital Euro as Defense for European Sovereignty

European Central Bank Executive Board member Piero Cipollone stated that a planned digital euro offers the European Union payment sovereignty and reduces reliance on external third parties ¹. In an interview published by the central bank, Cipollone warned that relying heavily on foreign entities threatens the smooth operation of essential services, drawing parallels to European dependencies in energy and defense ¹.

The central bank plans to run a pilot next year involving real transactions conducted by staff from the ECB and national central banks ¹. Preparations involve 36 market operators, including seven entities from Italy, alongside an open invitation for e-commerce and mobile-commerce firms to join the trials ¹. The ECB previously outlined its broader tokenization infrastructure via wholesale DLT and digital euro safeguards, reflecting continued efforts to develop European payment rails ¹.

Brussels Legislation Precedes Issuance

Cipollone clarified that establishing domestic payment infrastructure does not mean excluding foreign companies ¹. Instead, the objective is to ensure the bloc can rely on its own capabilities for fundamental payment activities ¹. During a lecture in Latvia, Cipollone noted that non-European firms currently govern two-thirds of all card transactions across the euro area ¹.

A formal decision by the ECB Governing Council to issue a digital euro remains contingent on the conclusion of legislative negotiations in Brussels ¹. Cipollone expressed hope that European lawmakers will adopt the governing regulation by the end of the year, which would allow the central bank to make a definitive issuance decision ¹.