The European Central Bank (ECB) is doubling down on plans for a digital euro, warning that cash alone may no longer be sufficient in an era increasingly dominated by private digital payment systems.
Speaking at the France Payments Forum on May 15, ECB executive board member Piero Cipollone emphasized that while traditional banknotes will remain in circulation, their usage is steadily declining. He noted that consumers are rapidly embracing private digital payment options, which, although convenient, do not fully align with public interest goals.
A sovereign Europe needs a future-proof currency, says Executive Board member Piero Cipollone. The digital euro will extend the benefits of cash into the digital realm, reduce overreliance on foreign providers, and allow private initiatives to scale up across the euro area.
— European Central Bank (@ecb) May 15, 2025
“are convenient, but they don’t serve all public interest objectives,” Cipollone said, stressing the need for a public digital currency that ensures inclusivity and reduces overreliance on a few dominant private providers.
The ECB has long argued that a digital euro would help preserve Europe’s monetary sovereignty—especially as other global powers, including the U.S., explore policy shifts that support stablecoins. European officials fear that the continent’s financial autonomy could be undermined without a public alternative like the digital euro.
While Cipollone clarified that a digital euro is not intended to replace cash, he said it would complement it by offering the same level of trust and accessibility but in a format suited for digital transactions. Importantly, he reassured that the digital euro would not be programmable, meaning individuals would retain complete freedom over spending it.
Though the project is still under development, the ECB maintains that the digital euro will be accessible to all at any time. However, no official timeline for its launch has been announced.
Meanwhile, Francois Villeroy de Galhau, the Bank of France Governor and ECB Governing Council member, warned that the U.S. risks negligence by embracing crypto-assets and non-bank finance under Trump. He also warned that President Donald Trump’s pro-crypto policies could lead to global financial instability.
His stance aligns with ECB President Christine Lagarde, who has consistently criticized Bitcoin and decentralized finance (DeFi), arguing they pose financial stability risks.
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