Speaking at the European Parliament, ECB Governing Council member Piero Cipollone welcomed the legislature's broad support for the Single Currency Package and called for its swift conclusion to enable the digital euro's legal framework.
He stressed that delays in adopting the regulation could postpone the digital euro's introduction, further entrench Europe's dependence on foreign providers, and make it harder for European companies to innovate and compete.
Progress extends beyond the digital euro, with the Eurosystem launching Pontes in September, connecting distributed ledger technology platforms with TARGET Services, which saw 18 market participants onboarded immediately and later settled the European Stability Mechanism's first €1 billion digitally native benchmark bond on 2 November.
Preparations for the digital euro pilot continue, testing technical functionality and user experience using a beta version without legal tender status starting in the second half of 2027, involving staff from the ECB and national central banks, 36 selected payment service providers from over 50 applicants, and merchants offering everyday services.
Additional calls for online and mobile merchants to join the pilot were opened in September, with final selections expected early next year, while collaboration with market players remains essential to ensure the digital euro works in everyday life for consumers and businesses.
The ECB plans to make all relevant use cases technically available from first issuance, though feedback suggests a gradual rollout would support a smooth implementation, with co-legislators intending to provide legal clarity on phased distribution in shops.
Work on the digital euro innovation platform includes a new call for expressions of interest in January 2027, testing conditional payments and exploring AI applications in payments, alongside ongoing banknote design discussions following a survey that received almost 10 million responses across all euro area countries and age groups.
Regarding cash, Cipollone affirmed that it must remain widely available and accepted, supporting strong legislative provisions on mandatory cash acceptance, access across the euro area, and infrastructure resilience, especially in today's uncertain geopolitical environment.
He noted that in two months the euro will mark 25 years since banknotes and coins entered circulation, and expressed hope for a strong legal framework by then that safeguards cash acceptance while providing Europeans with a digital form of cash alongside it.
The Single Currency Package comprises the legislative proposal on euro cash as legal tender and the proposals establishing the legal framework for a possible digital euro, with a swift conclusion needed to provide certainty for first issuance timing and finalize the digital euro's design and rulebook.
Source: European Central Bank. Read the original report ↗