European Central Bank Executive Board member Piero Cipollone has argued that the upcoming digital euro project could provide the eurozone with vital monetary sovereignty over a payment infrastructure that currently suffers from a heavy dependency on external, non-European third parties. Speaking in a comprehensive interview with Italy’s Milano Finance, which was officially published by the central bank, Cipollone outlined the strategic imperatives driving the central bank digital currency (CBDC) initiative as preparations ramp up for an upcoming pilot phase slated for next year.
The discussion surrounding the digital euro comes at a crucial juncture for the European Union as the bloc increasingly evaluates its economic dependencies in an unstable geopolitical climate. Cipollone pointed out that because the eurozone is critically dependent on foreign third-party providers for basic financial transactions, ensuring the continuous, smooth functioning of everyday commerce is becoming increasingly difficult. Although he did not explicitly single out specific companies or foreign nations during the interview, his remarks underscore a growing anxiety among European policymakers regarding the dominance of non-European financial giants in digital payments.
Drawing parallels to other critical infrastructure sectors where Europe has historically found itself exposed to external vulnerabilities, Cipollone emphasized that payment systems should be treated with the same strategic gravity as energy and national security. In recent years, Europe has learned harsh lessons regarding the dangers of relying exclusively on external entities for essential services. The continent experienced these painful lessons firsthand during the energy crises following geopolitical disruptions, and similar vulnerabilities are visible today in defense sectors. According to the ECB Executive Board member, the exact same principle applies to payments and monetary infrastructure.
As the central bank pushes forward with its technological roadmap, concrete preparations for the digital currency are materializing. The upcoming pilot phase will rely heavily on real transactions executed by staff members of both the European Central Bank and various national central banks across the eurozone. The ECB has actively engaged with the financial ecosystem, securing collaboration from 36 different market operators—including seven prominent financial institutions based in Italy—to assist with technical preparations, infrastructure testing, and operational integration. Furthermore, the central bank is actively extending invitations to e-commerce and mobile-commerce operators to participate in the upcoming trials, ensuring that the digital currency functions seamlessly within modern digital retail environments.
The smooth functioning of payment systems is designated as one of the fundamental statutory responsibilities of the central bank. Cipollone reiterated that if the eurozone remains critically dependent on third parties, guaranteeing that smooth functioning becomes a complex and fragile challenge. However, he was careful to clarify that pursuing financial sovereignty does not mean completely shutting out foreign third parties or erecting protectionist walls around the European economy. Instead, he defined true sovereignty as possessing the independent power to choose and having the absolute certainty that, for an essential public service as critical as payments, Europe can also rely entirely on its own institutional and technological strength.
This recent interview builds upon previous warnings issued by the ECB official earlier this year. In an April public lecture held in Latvia, Cipollone addressed the structural risks embedded in the current retail payments landscape, noting that Europe’s heavy reliance on non-European payment providers creates a profound strategic vulnerability. Statistical data highlights this imbalance starkly, with roughly two-thirds of all euro-area card transactions currently governed and processed by non-European companies. The ECB contends that introducing a digital euro could substantially reduce this systemic dependence, creating a robust, resilient, and European-controlled payment backbone capable of withstanding external geopolitical shocks.
Despite the momentum behind the technical trials and institutional preparations, the definitive realization of the digital currency remains subject to the legislative processes currently underway in Brussels. The ECB Governing Council possesses the authority to officially decide on issuing the digital currency only after the formal legislative negotiations concerning the digital euro framework are fully concluded by European lawmakers. Expressing optimism regarding the legislative timeline, Cipollone told Milano Finance that the central bank hopes the necessary regulation will be successfully adopted by the end of the year. Such a legislative milestone would subsequently enable the ECB’s Governing Council to adopt a formal, legally grounded decision regarding the actual issuance of the digital euro for the broader European public.
