The Eurosystem has published a strategic plan outlining its vision for the evolution of European payments, covering wholesale, retail, cross-border, and tokenised assets, with a focus on innovation and stability.
The Eurosystem has published its comprehensive payments strategy, outlining its vision for the evolution of Europe’s payments amid rapid technological change. It extends the Eurosystem’s cash and retail payments strategies by covering wholesale, business-to-business, and cross-border payments.
The strategy considers the adoption of new technologies such as tokenisation and distributed ledger technology, aiming to promote innovation while maintaining central bank money as the trust anchor.
Piero Cipollone, a member of the ECB’s Executive Board, stated, “Payments are critical for society, and they are changing rapidly. The ECB is working to ensure they remain reliable, fast, competitive, and open for innovation.”
The strategy has four main aims:
It recommends seizing the potential of tokenisation, emphasizing that for wholesale transactions, central bank money should remain central, complemented by private settlement assets like tokenised deposits and stablecoins that are EU-governed, euro-denominated, and properly regulated.
The strategy advocates for standardisation, automation, and process integration in business-to-business payments to enhance efficiency and innovation.
Regarding retail payments, the strategy highlights the role of the digital euro in developing pan-European private retail payment solutions, emphasizing the complementarity between the digital euro and private initiatives.
The strategy consolidates all major Eurosystem initiatives, including the digital euro, Pontes, and Appia projects, along with cross-border payment enhancements, to ensure central bank money adapts to the digital age while supporting private sector efforts.
It also supports efforts to keep euro cash widely available, accessible, and accepted, including developing new euro banknotes with updated designs and reinforcing the legal tender status of cash.
The Eurosystem will continue monitoring market and technological developments to adapt its strategy as needed to maintain secure and innovative payments across Europe.
