European Central Bank (ECB) board member Piero Cipollone says rising geopolitical tensions are making the case for a European-controlled digital payments system stronger.
In an interview with Spanish newspaper El Pais shared by the ECB on Wednesday, Cipollone described the proposed digital euro as a “digital form of public finance”, arguing that it is needed to complement cash and address Europe's increasingly fragmented payments environment, especially with the growth of e-commerce.
He noted that cash would account for around a quarter (24%) of everyday transactions in 2024, a significant decrease from 2019 (40%), and said the ECB had a responsibility to adapt the way money is provided as a public good.
Geopolitics reshapes Europe’s payments debate
Cipollone linked his mission directly to geopolitics, warning that the “weaponization of every conceivable tool” and rising global tensions are increasing the need for a European retail payments system “completely under our control”, built on European technology and infrastructure rather than non-European providers.
Interview with Piero Cipollone. Source: EC.B.
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He argued that such a system should be able to meet all of Europe's payment needs without creating “undue dependence” on foreign schemes.
ECB officials also emphasized the legal tender status of the digital euro, saying merchants that currently accept digital payments “must do so,” suggesting a de facto compulsory acceptance system for digital euro payments.
Digital euro promotes unified EU payments
Cipollone rejected calls for the project to be delayed in favor of waiting for purely private alternatives, noting that the ECB “has been calling on the private sector to come up with pan-European solutions for many years.”
Instead, he argued, introducing a digital euro with a single open standard accepted by all merchants would increase the chances of offering a truly pan-European retail payments layer, rather than ultimately crowding out banks and fintechs.
Cipollone also refuted suggestions that a digital euro should exist only in offline form.
He argued that one of the core problems the project was trying to solve was the lack of viable payment methods for e-commerce in Europe, and questioned how an offline-only solution would work for online transactions.
His comments followed an open letter on January 11 from some 70 economists and policymakers urging EU lawmakers to “prioritize the public interest” on digital Eurofile, warning that further delays could deepen Europe's dependence on dominant private and non-European payment providers.
Cointelegraph reached out to Piero Cipollone's office for comment, but did not receive a response in time for publication.
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