The European Central Bank has again pushed for a digital euro, but many lawmakers in the European Union are not fully happy with the idea and its possible impact on citizens and banks.
On Thursday, ECB board member Piero Cipollone spoke to a parliamentary economic committee. He said the digital euro would make sure “all Europeans can pay at all times with a free, universally accepted digital means of payment, even in case of major disruptions.” In simple terms, he meant that people would always have a safe way to pay, even if something big went wrong with the system.
Cipollone explained that the digital euro would not replace cash. Instead, it would be used together with coins and notes. He said cash is still very important for people who rely on it, but digital payments are now a normal part of daily life and governments should guarantee them.
Some lawmakers disagreed. They said the digital euro could become a risk for private banks. If people chose to keep their money directly with the central bank, commercial banks might lose deposits, which could affect their business. Lawmakers also worried about privacy, asking if citizens’ personal data would really be safe.
However, Cipollone tried to answer these concerns. He said the ECB “will not know anything about the payer and the payee” and promised an offline payment option that would be “as good as cash in terms of preserving the privacy of the people.”
He also warned that most of Europe’s payment systems are currently run by non-EU providers. This, he said, could stop Europe from acting fast in a crisis. He suggested the digital euro could work as a backup in case of cyberattacks or system failures. He also pointed to the United States, where dollar-backed stablecoins are being promoted.
Pierre Pimpie, from the Patriots for Europe party, said “accounts in private banks could be emptied” and did not trust the ECB’s power to set account limits. He argued those limits could change in a crisis. Cipollone replied that the caps would be set “on the basis of rigorous analysis” and added, “The digital euro at that point would be the least of our problems.”
The legislation for the project has been in parliament since 2023. Because of delays and elections in 2024, it has not moved forward quickly. Cipollone said approval may come in 2026, and testing could take three more years, which would mean a possible launch around 2029.
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