ECB Promotes Digital Euro as an Alternative to Cash and a Boost to European Sovereignty
With the rapid development of financial technology and the global spread of digital payments, the European Union faces a dual challenge: providing secure and accessible payment methods for all its citizens while preserving its technological and financial sovereignty. In this context, the European Central Bank (ECB) is seeking to introduce the digital euro as a new option that strengthens Europe’s financial independence and ensures control over its digital infrastructure, reducing reliance on foreign systems, particularly those of the United States.
Ease of Use and Universal Service
The ECB aims to promote the digital euro both as an innovative consumer product and as a strategic hedging tool for the EU, particularly as Europe examines the extent to which its daily payment systems depend on infrastructure owned outside the Union. This initiative is part of a broader effort to strengthen European financial sovereignty and reduce dependence on foreign technology and services.
In a recent interview with the Süddeutsche Zeitung, ECB Executive Board member Piero Cipollone summarized the core idea of the digital euro: “Quite simply, it’s easy to use. You can use it everywhere, in Germany and across the Eurozone.”
He added that the project is designed to be inclusive, reaching small shops and people without smartphones. “Every merchant who accepts digital payments today will be required to accept the digital euro in the future. Merchants will be pleased with this, as fees will be significantly reduced, and the European Central Bank is providing the infrastructure,” he explained.
Last September, Cipollone stated that launching the digital euro by mid-2029 is a reasonable and realistic timeline. He emphasized that the initiative is not intended to replace traditional currency but rather to offer an additional, freely accessible option for everyday use.
“It will be like cash, but in digital form. Coins and banknotes will remain available, and no one will be forced to switch to the digital euro,” he said.
Digital Sovereignty and Transaction Security
Cipollone then shifted from ease of use to the importance of technological sovereignty, stressing that a digital currency must rely on fully European infrastructure. “Don’t you feel more secure knowing that the money you use to make payments every day is based on European technology, meaning it’s in European hands and not dependent on other countries?” he asked.
To illustrate his point, he cited the International Criminal Court, where US sanctions prevented judges from using their cards, limiting their ability to make payments across Europe. “With the digital euro, they could continue to make payments freely within the eurozone, without any external restrictions,” he added.
Reducing Dependence on Foreign Payment Systems
Cipollone warned that dependence on foreign payment systems is deeper than it appears, as national cards often pass through international networks for cross-border or online transactions. He also noted that some eurozone countries lack sophisticated domestic payment systems, further underscoring the need for independent European infrastructure.
He explained that the digital euro would establish a comprehensive payment network, providing a pathway for public funds and supporting private European solutions to expand across borders. “Today, American companies own vital parts of the infrastructure, and theoretically, they could cut ties with us. But with European infrastructure, we would own the network. And if one provider were to withdraw, Europe would still have sufficient alternatives,” he said.
Cipollone emphasized the importance of accelerating implementation, noting that standards and acceptance rules shape markets even before any official launch. “Every delay increases our dependence on foreign payment systems and weakens our ability to maintain European digital financial sovereignty,” he concluded.
