ECB’s Cipollone: Digital Euro to Anchor Europe’s Retail Payment Infrastructure

European payments sovereignty moved back to the top of the policy agenda Thursday (Jan. 29) as European Central Bank (ECB) Executive Board Member Piero Cipollone said the digital euro would provide the retail payments infrastructure the euro zone currently lacks, per Reuters.

Speaking at a conference in Italy, Cipollone argued that Europe must become self-sufficient in payments as transactions move deeper into digital channels, according to Reuters. His remarks come as policymakers across the region weigh how to reduce reliance on U.S.-based card networks and dollar-linked stablecoins while preserving the central bank’s role at the core of the monetary system.

Cipollone said the ECB’s planned digital euro, alongside two wholesale payments initiatives, would give the euro zone the tools it needs “to keep its house in order.”

The digital euro is designed for use both online and in physical stores, and in both online and offline modes, positioning it as a universal public payment instrument. Cipollone framed the project as a response to the rapid growth of stablecoins, most of which are pegged to the U.S. dollar. Those instruments only pose a risk, he said, if Europe’s payments system fails to meet users’ needs. If all use cases are covered, Cipollone argued, consumers would have little reason to migrate to more complex alternatives.

The ECB’s approach has drawn criticism from parts of the banking sector, with concerns that a retail central bank digital currency (CBDC) could compete directly with commercial lenders.

Cipollone pushed back, saying the digital euro would create a single payments infrastructure while keeping banks central to distribution and data. Commercial banks would provide digital wallets and retain exclusive access to customer payments information, while consumers would transact via mobile applications, Reuters reported.

Cipollone’s comments come as Europe’s CBDC agenda has been shifting from theory to execution. 2026 is shaping up as a decisive year, with legislative deadlines looming and wholesale CBDC infrastructure — such as the ECB’s Project Pontes — advancing faster than retail initiatives. While political resistance remains in parts of the European parliament, institutional preparation for a digital euro has continued. Provided that national governments and the European Parliament agree on a legal framework this year, the ECB could begin pilot testing the technology next year, possibly issuing the currency in 2029.