Quick Breakdown
- ECB is pushing ahead with plans for a digital euro despite lawmakers’ concerns.
- Critics warn of privacy risks and potential harm to commercial banks.
- Legislation could pass in 2026, with a full rollout expected by 2029.
Digital euro debate reignites in European Parliament
The European Central Bank (ECB) has renewed its push for a digital euro, sparking resistance from EU lawmakers over concerns about privacy and the stability of commercial banks.
Speaking before the European Parliament’s economic committee on Thursday, ECB board member Piero Cipollone argued that the digital euro would provide Europeans with a free, universally accepted payment option, one that remains functional even during severe disruptions.
Like cash, the digital euro will allow everyone to pay throughout the euro area at all times and safeguard inclusion for all Europeans.
Read Executive Board member Piero Cipollone’s full speech at the @Europarl_EN https://t.co/GR7wj5krsl pic.twitter.com/mkWXzroexU
— European Central Bank (@ecb) September 4, 2025
Digital euro as a safeguard in crisis
Cipollone emphasized that much of Europe’s payments infrastructure depends on non-EU providers, leaving the bloc vulnerable in times of crisis. He presented the digital euro as a fallback solution in the event of cyberattacks or network outages, citing U.S. efforts to promote dollar-backed stablecoins as a comparison.
“The digital euro would complement cash, not replace it,”
Cipollone said, adding that digital payments have become essential for daily life and must be secured by the state.
Lawmakers raise privacy and banking risks
Several parliamentarians pushed back, warning that a central bank-backed currency could undermine commercial banks if citizens chose the ECB as the safer option.
Privacy concerns dominated the debate, with critics arguing that users’ financial data could be exposed. Cipollone countered that the ECB would not track transactions, promising that an offline version of the digital euro would preserve cash-like anonymity.
Pierre Pimpie of the Eurosceptic Patriots for Europe group argued the ECB’s power to impose caps on holdings could destabilize private banks. Cipollone dismissed the claims, saying the limits would be based on “rigorous analysis,” stressing that in a true crisis, capital would flee to foreign stablecoins long before the digital euro.
Roadmap: law in 2026, launch by 2029
The ECB expects legislation to be finalized by mid-2026, requiring approval from the European Parliament, the European Commission, and the European Council. Once passed, the bank will need up to three years to build and test the system, setting 2029 as the earliest possible launch date. The ECB also confirmed that physical cash will continue to play an essential role alongside the growing use of digital payments in Europe.
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