Digital Euro Crucial for Europe's Strategic Independence, Says ECB Executive

The introduction of a digital euro is essential for maintaining Europe's strategic independence, according to Piero Cipollone, a member of the European Central Bank's Executive Board. According to PANews, Cipollone emphasized the need to reduce reliance on non-European payment systems such as Visa, Mastercard, and PayPal. He highlighted that Europe is currently heavily dependent on external suppliers for its payment systems, and this dependency could increase if no action is taken. The digital euro is expected to enter a pilot phase in 2027, with issuance planned for 2029. Cipollone clarified that this initiative is not a reaction to any specific country or company but rather a fulfillment of the ECB's duty to ensure the smooth operation of payment systems and mitigate systemic risks from over-reliance on external infrastructure. Cipollone also addressed the issue of stablecoins, warning that these privately issued digital assets could "threaten financial stability." He suggested that providing the public with a simple and reliable euro-denominated alternative is crucial to effectively combine public and private currencies. The legal framework for the digital euro project is still awaiting final approval from the European Parliament, with some members favoring private sector solutions.