The European Central Bank (ECB) has been developing a digital euro as part of efforts to strengthen Europe’s position in digital payments and reduce reliance on non-European payment infrastructure. Piero Cipollone, a member of the ECB’s executive board, said that Europe needs to address its dependence on foreign payment systems while improving its technological competitiveness.
In an interview with Le Monde, Cipollone pointed to Europe’s lower productivity growth and the difficulty European companies face in scaling across national borders. He also highlighted how European consumers can depend on U.S. and Chinese payment providers for everyday transactions, illustrating the region’s reliance on foreign financial infrastructure.
The digital euro’s role in European payments
The ECB describes the digital euro as a digital form of central bank money that would complement cash and existing private payment methods. The project is intended to provide a common digital payment option across the euro area while supporting competition and reducing fragmentation in European payments.
The project has moved beyond the preparation phase described in the article. That phase ran from November 2023 to October 2025, after which the ECB moved into a new stage focused on technical readiness, market engagement and support for the EU legislative process.
The practical challenge is no longer simply designing the currency. The ECB must demonstrate that the system can work alongside banks, payment providers and existing payment networks without creating unnecessary disruption or risks for financial stability.
Pilot planned for 2027
The ECB selected 36 payment service providers in July 2026 to participate in a planned 12-month pilot beginning in the second half of 2027. The pilot will test digital euro payments in real-world situations, including person-to-person, in-store and online transactions.
The ECB currently aims to be ready for a potential first issuance in 2029, assuming the required EU legislation is adopted. The central bank has stressed that it will not decide whether to issue the digital euro until the legislative process is complete.
Meanwhile, Russia’s largest bank, Sberbank, was set to offer the digital ruble to customers as part of the Bank of Russia’s CBDC testing program, showing that central banks outside Europe were also moving toward digital versions of national currencies.
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