Piero Cipollone of the ECB discusses progress on the digital euro, including inclusion, innovation, integration into the payments ecosystem, and piloting activities, with potential launch in 2029.
Piero Cipollone, Member of the Executive Board of the ECB, provided an update on the digital euro during a session with the European Parliament’s Committee on Economic and Monetary Affairs.
He highlighted that the euro area leaders reaffirmed the importance of advancing the digital euro initiative, which aims to strengthen EU monetary sovereignty, reduce retail payment fragmentation, and support the Single Market’s integrity and resilience.
The Eurosystem is continuing technical preparations to ensure readiness for a digital euro that functions across the euro area and complies with legislation. The launch of Pontes, the Eurosystem’s DLT solution for central bank money settlement, is planned for the third quarter of 2026. Additionally, the Appia initiative aims to build an integrated European digital assets market.
The update covered four key areas: inclusion and accessibility by design, innovation, integration into the European payments ecosystem, and piloting activities.
The ECB emphasizes that the digital euro must be accessible to all, including people with disabilities and those facing digital financial exclusion. About 30 million Europeans are blind or partially sighted, and over 20% of Europeans are uncomfortable using digital financial services.
Efforts include research with vulnerable consumers and a collaboration agreement with the ONCE Foundation to design accessible features such as voice commands, large-font displays, and simplified workflows. The goal is to meet and exceed European Accessibility Act requirements, ensuring broad usability.
The ECB is partnering with the private sector to foster innovation, addressing challenges of scaling and fragmentation. The digital euro aims to provide a common infrastructure and standards to enable private sector development of new services.
In 2024, a platform involving around 70 market participants was launched to explore innovation opportunities, including conditional payments, offline functionalities, and new payment instruments. Future work will focus on experimentation and exploration of technological developments, including AI and machine-to-machine payments.
The ECB is discussing with industry how the digital euro can complement existing European payment schemes through co-badging and establishing common standards. These measures aim to reduce dependence on international card schemes and support private sector innovation.
Development of a digital euro rulebook and standards is underway, with an announcement expected by summer. Final standards will depend on legislation adoption, enabling merchants to upgrade payment terminals and PSPs to expand their services.
The ECB has launched a pilot program to test digital euro features in real-life conditions, involving online and offline activities at central banks and merchants. Applications from licensed PSPs are being evaluated, with selected participants expected to start development in Q3 and pilot testing in H2 2027.
This pilot aims to ensure technical readiness for a potential digital euro issuance in 2029, contingent on legislative approval. All market participants will have access to technical documentation and updates through dedicated channels.
The ECB concludes that the digital euro can reinforce innovation, inclusion, and resilience in Europe. Progress is steady, with preparations focused on standards, pilot testing, and legal frameworks. The ECB looks forward to the European Parliament’s position on this initiative.
