ECB wants to speed up digital euro regulation to reduce external dependency

The European Central Bank (ECB) is pushing to accelerate the approval of the digital euro regulation, a move aimed at bolstering Europe's financial independence and safeguarding its monetary sovereignty. Piero Cipollone, a member of the ECB's Executive Committee, emphasized the growing threat posed by reliance on external financial infrastructures during a conference in Rome.

Cipollone urged for decisive progress on the Eurosystem's digital agenda to prevent the continent from becoming dependent on foreign financial systems. He confirmed that the ECB is actively engaged in the technical preparations for issuing a digital euro, although its final launch hinges on the formal adoption of the regulation. The recent agreement within the European Parliament and the prospect of its formal endorsement in the coming weeks were welcomed as positive steps.

"We expect a rapid conclusion of the trialogue between the Council of the EU, the European Parliament, and the European Commission and the final adoption of the Regulation, which will provide certainty for consumers, merchants, and market participants," Cipollone stated. The proposed timeline suggests a pilot project in 2027 and the first digital euros issued in 2029, contingent on regulatory approval by the end of 2026.

Despite the push for a digital euro, Cipollone reiterated the ECB's commitment to maintaining cash as an "essential" and widely available payment method. He stressed the need for the euro to remain a relevant currency in the digital age, both domestically and internationally. The ECB views a European-based digital payment solution as crucial for addressing the continent's vulnerability in retail payments, particularly in an increasingly fragmented global landscape where dependence on non-European solutions for everyday transactions is deemed unacceptable.