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As Europe moves closer to introducing a digital euro, the European Central Bank (ECB) has launched an outreach campaign to reassure citizens that this new payment option will complement, not replace, cash, thereby offering greater freedom of choice in how they pay.
Although a final decision on issuing a digital euro has yet to be made, the ECB entered a two-year preparation phase last year. The earliest possible launch date would be in 2026.
In a widely published article, ECB executive board member Piero Cipollone advocates for the digital euro, stating, “We do not yet have a cash equivalent for making digital payments, which limits our freedom in an increasingly digital age.”
Currently, Europeans depend heavily on electronic payment options from non-European providers, with US companies Visa and Mastercard dominating the card market.
“A digital euro would combine the convenience of digital payments with cash-like features,” Cipollone explains. He notes that it could be used in stores, for e-commerce, peer-to-peer payments, and even offline transactions.
Cipollone further emphasizes, “The digital euro would make it easier for euro area firms to offer pan-European digital payment solutions. This would strengthen competition in a market currently dominated by a few non-European players, thereby lowering costs for merchants and consumers.”
Additional benefits, according to Cipollone, include greater privacy compared to commercial payment options and enhanced financial inclusion, ensuring that no one is left behind.
“More than just a payment option, a digital euro would bring Europeans closer in an increasingly digital and unstable world. It would make our lives easier while preserving our freedom of choice,” Cipollone concludes.
This public relations effort coincides with the ECB’s release of a progress report on the ongoing preparation phase.
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