Cipollone urges year-end digital euro agreement before issuance date can be set
European Central Bank board member Piero Cipollone urged completion of digital euro legislation by year-end at a Brussels parliamentary hearing. He said an issuance date could be set only after the regulation is adopted. Preparations include a pilot in the second half of 2027, using a test version without legal tender status and involving payment providers and selected merchants.
Economics & Markets··Morning
Legal agreement comes before an issuance date
Piero Cipollone, a member of the European Central Bank’s Executive Board, called for rapid completion of digital euro legislation at a European Parliament hearing in Brussels on November 10. He urged a swift conclusion to the three-way negotiations on the Single Currency Package so it could be adopted by the end of the year. He said the resulting legal certainty was needed to finish preparations for the digital euro.[1], [2]
Cipollone said a date for possible first issuance could be determined only once the regulation had been adopted. He warned that legislative delay could push introduction further back and deepen Europe’s dependence on foreign payment providers. His remarks addressed the European Parliament’s Committee on Economic and Monetary Affairs. The legal timetable was presented as a condition governing the eventual issuance timetable, while technical preparations continued for the planned trial.[1]
The 2027 pilot will use a test currency
The pilot is scheduled to start in the second half of 2027. It will use a beta version of the digital euro that has no legal tender status. Participants will test technical functions, operating processes and the experience of making and receiving payments. For the trial described by Cipollone, Eurosystem staff, participating payment service providers and selected merchants will take part in the trial. The trial will evaluate the way payment functions work, how transactions are processed and participants’ experience of using the service. The pilot is a planned testing phase preceding any possible first issuance.[1]
In July, 36 payment providers were chosen from more than 50 applicants, including banks and non-bank businesses. A further invitation went out in September to merchants selling through websites and mobile channels, allowing the pilot to test remote payments. Final merchant selections are expected early next year. Separately, the innovation platform’s next phase will run from January to June 2027 and explore conditional payments and applications of artificial intelligence in payments.[1]
Cash access and new banknotes remain on the agenda
Cipollone also supported measures to preserve widespread access to cash and its acceptance in payments. Alongside the digital project, preparations for a new euro banknote series are progressing. A survey on proposed banknote designs received almost 10 million responses. The decision on the final design concept is expected around the end of this year, with the first denominations of the new series expected to enter circulation in the early 2030s.[1]
