ECB policymaker warns of fragmentation without digital euro
Summary
ECB executive board member Piero Cipollone argued that a pan-European digital euro could reduce fragmentation in digital payments and support Europe’s monetary sovereignty, while giving banks infrastructure to compete rather than replacing them. The ECB has not decided whether to issue one. It aims to complete the legislative process by the end of 2026; if approved, a 12-month pilot could begin in the second half of 2027, with issuance potentially in 2029. Critics cite risks of surveillance and spending controls.
