European Central Bank Executive Board member Piero Cipollone has told EU lawmakers that the ECB expects to announce European technical standards for a potential digital euro by this summer. The announcement is intended to give payment providers and merchants sufficient time to prepare their systems ahead of any formal issuance decision. Once the standards are published, the ECB plans to work closely with market participants to embed them into payment terminals and other solutions as quickly as possible.
Cipollone explained that finalizing the rulebook would allow new terminals and payment applications to ship with the required infrastructure already built in. This would give European companies a head start once supporting legislation is in place, which the ECB anticipates will occur in 2026. The move is seen as a preparatory step rather than a commitment to launch the digital currency.
The ECB’s digital euro pilot program, for which the central bank opened a call for licensed payment service providers in March, is scheduled to run for 12 months beginning in the second half of 2027. The pilot will test person-to-person and point-of-sale payments in a controlled environment. The broader goal is for the ECB to be technically ready for a possible issuance around 2029, contingent on lawmakers approving the necessary legal framework.
Earlier ECB analysis estimated that a digital euro could cost EU banks between 4 and 6 billion euros over four years, a figure the central bank described as roughly 3% of their annual information technology maintenance budget. Cipollone urged lawmakers to weigh those costs against the long-term benefits, including retaining more merchant fees within Europe and strengthening European payment schemes. He framed the investment as a strategic consideration for the continent’s financial independence.
Cipollone reiterated that the digital euro is conceived as a public payments infrastructure rather than a direct-to-consumer product issued by the ECB itself. Private intermediaries such as banks and payment service providers would use the infrastructure to offer wallets and services to end users. The design envisions co-badged cards and bank wallets capable of switching between domestic payment schemes and the digital euro across the euro area, reducing reliance on international card networks.
The ECB official also emphasized that the digital euro is intended to complement cash and bank deposits, not replace them. Accessibility features such as voice commands and large-font displays are being incorporated into the reference application design from the outset to promote inclusivity. Cipollone added that the ECB wants central bank money to remain the anchor for future wholesale markets, pointing to its Pontes project, which tests the settlement of tokenized securities in central bank money across different distributed ledger technology platforms, and its Appia roadmap for a tokenized European financial ecosystem.
In a separate speech delivered on Monday, Cipollone outlined how tokenized central bank money could serve as the settlement asset for stablecoins and tokenized deposits. The remarks underscore the ECB’s broader ambition to position itself at the center of an evolving digital financial landscape in Europe. No final decision on issuing a digital euro has been made, with the outcome remaining dependent on the legislative process expected to unfold over the coming years.
Originally reported by CoinTelegraph.
