The European Central Bank (ECB) is gearing up to announce the standards for a potential digital euro by this summer, according to Piero Cipollone, a member of the ECB Executive Board. According to Cointelegraph, this move aims to assist payment providers and merchants in preparing their systems ahead of any issuance decision. Cipollone informed European Union lawmakers that once these standards are revealed, the ECB will collaborate with market participants to integrate them into payment terminals and other solutions promptly.
Cipollone emphasized that finalizing the rulebook would enable new terminals and payment applications to be equipped with the necessary infrastructure, providing European companies with an advantage once EU legislation is enacted, which the ECB anticipates will occur in 2026. The ECB's digital euro pilot, which began seeking licensed payment service providers in March, is set to run for 12 months starting from the second half of 2027. This pilot will test person-to-person and point-of-sale payments in a controlled environment, aiming for technical readiness for potential issuance around 2029, contingent on legal framework approval by lawmakers.
Earlier analyses by the ECB estimated that implementing a digital euro could cost EU banks between 4-6 billion euros over four years, representing approximately 3% of their annual IT maintenance budget, as reported by Reuters in February. Cipollone advised lawmakers to weigh these costs against the long-term benefits of retaining more merchant fees and expanding European payment schemes. He reiterated that the digital euro is envisioned as a public payments infrastructure, utilized by private intermediaries like banks and payment service providers to offer wallets and services, rather than a direct-to-consumer product from the ECB.
The digital euro is designed to complement cash and bank deposits, not replace them, Cipollone noted. He highlighted that accessibility features, such as voice commands and large-font displays, are being incorporated into the reference app design to ensure inclusivity. Additionally, the ECB aims for central bank money to remain the "anchor" for future wholesale markets, referencing its Pontes project, which explores settling tokenized securities in central bank money across various distributed ledger technology platforms, and its Appia roadmap for a tokenized European financial ecosystem. In a separate address, Cipollone discussed how tokenized central bank money could serve as the settlement asset for stablecoins and tokenized deposits.