The debate on the future of the digital euro returned to the European Parliament this week. Piero Cipollone, a European Central Bank’s board member, addressed the economic committee for the fourteenth exchange on the subject. The European Central Bank (ECB) is framing the digital euro as a matter of “resilience and inclusion”.
“It’s my pleasure to be back for our regular update on the digital euro,” Mr Cipollone began, reminding MEPs that it was his fifth appearance before the committee. Past discussions have focused on monetary stability and strategic autonomy. This time, however, he focused the intervention on how a central bank digital currency could protect Europeans during crises, while ensuring that no citizen is left behind in an increasingly digital economy.
A digital backup
Mr Cipollone argued that cash alone can no longer guarantee payment continuity. In a world of cyber threats, geopolitical tension, and fragile infrastructure, complementary solutions are necessary. “Today, cash is our only true fallback and we are strongly committed to ensuring that it remains available, accessible and accepted throughout the euro area,” he said. “But as society increasingly moves away from cash, and as cash itself may be difficult to access in emergencies, especially if cash distribution networks are disrupted, we need to complement it with a digital version.”
The ECB official cited recent incidents to illustrate vulnerabilities. These included the sabotage of undersea cables in the Baltic Sea, widespread power outages in Spain and Portugal that left citizens unable to pay without cash, and Europe’s heavy reliance on non-EU providers. “The digital euro will ensure that all Europeans can pay at all times with a free, universally accepted digital means of payment, even in case of major disruptions,” he said.
According to the ECB’s vision, the digital currency ensures that payment continuity is possible during a crisis. That works through a combination of distributed technical infrastructure across several European regions, a dedicated ECB app capable of taking over if private apps fail, and the possibility of offline payments when internet or power connections are down.
Inclusion at the core
Alongside resilience, Mr Cipollone emphasised the need to make the digital euro inclusive. For decades, cash has ensured that all citizens, regardless of income or digital skills, could participate in the economy. However, as payments shift to digital platforms, he warned, the EU must not leave anyone behind.
“The digital euro, as a public good, would guarantee access for all citizens – no matter where they live, how much they earn or how digitally skilled they are”, he said. For that commitment, BCE is considering adaptive interfaces, such as voice commands and large-font displays, and is working with associations representing vulnerable groups to understand their needs, “so that the digital euro will work for people with accessibility needs or limited digital literacy”.
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The digital euro, as a public good, would guarantee access for all citizens, no matter where they live, how much they earn or how digitally skilled they are — Piero Cipollone, European Central Bank’s executive board member
More than 30 million Europeans are blind or partially sighted, and another 34 million are deaf or hard of hearing. To serve these citizens, the ECB is developing a digital euro app that will go beyond the requirements of the European Accessibility Act. Mr Cipollone also suggested that libraries, post offices and local authorities could serve as community support points, offering free assistance to those at risk of digital exclusion.
The question of costs
Concerns over the cost of the digital euro continue to worry lawmakers. MEP Fernando Navarrete Rojas (EPP/ESP), rapporteur on the file asked whether the project could become “extremely costly”, warning that the proposed compensation model might leave some payment service providers unable to recover their expenses. “We have a compensation model that does not guarantee that all parts of the system can recover their costs,” he said. “How resilient can a system be in which some participants lose money? We run the risk that this could go very badly.”
Mr Cipollone reassured the committee that the ECB would cover infrastructure costs and that the compensation framework is designed to make participation profitable. He explained that transaction fees would remain largely unchanged, while acquiring banks would benefit from lower costs by avoiding certain charges, with the savings redistributed among the three main parties. “The use of the digital euro will be sufficient for the ECB to pay for the infrastructure and recover the initial investment,” he said.
Early next year
The European Commission proposed the digital euro regulation in June 2023, which started the legislative process. Since then, the European Parliament’s Economic and Monetary Affairs Committee (ECON) has been reviewing the proposal. Meanwhile, the ECB is pushing for progress and aims to finalise the framework for issuing a digital euro by early 2026. However, this depends on the Parliament and member states agreeing on the legislative framework.
