Norbert Nagel · CC BY-SA 3.0 · Wikimedia Commons · Source · License
In an official interview with the Italian financial outlet Milano Finanza, published on October 24, 2026, Piero Cipollone, Executive Board member of the European Central Bank (ECB), detailed the roadmap for the introduction of the digital euro and the strategy to secure European payment sovereignty. Cipollone emphasized plans to reduce reliance on offshore payment markets and lower transaction fees for small businesses, aiming for a pilot program in 2027 followed by an official launch of the digital euro as early as 2029.
Roadmap: 2027 Live Pilot and 2029 Official Launch
This interview, for which the ECB released the full transcript on October 24, 2026, was conducted on October 21. Cipollone explained that the legislative proposal for the digital euro is currently under discussion in Brussels by EU lawmakers. Once the legislative process is completed by the end of this year, the ECB Governing Council will finalize the official launch year and specific implementation plans. Subject to the passage of legislation, the Eurosystem plans to officially launch the digital euro for citizens and businesses starting in 2029.
Ahead of the full launch, a live technical pilot program will begin in 2027, involving staff from the ECB and central banks across the Eurozone. Currently, 36 private market participants, including seven Italian companies, are collaborating with the Eurosystem on preparatory work, and the ECB is actively inviting further participation from e-commerce and mobile commerce operators. Once the legislation is enacted, a common rulebook will be finalized to enable private banks, payment service providers, and merchants to adapt their systems accordingly.
Overcoming Offshore Payment Dependence and Lowering Merchant Fees
Cipollone pointed out that European retail payment infrastructure is overly dependent on non-European payment networks such as Visa and Mastercard. For example, while the share of online payments in Italy surged from 6% of the total in 2019 to 24% in 2024, two-thirds of online card payments are processed via non-European card networks. Major Eurozone nations also lack independent payment networks, leaving both physical and online markets vulnerable to offshore infrastructure risks.
This structural dependence has led to increased cost burdens for small business owners. Currently, card payment fees for small shops in Europe are up to four times higher than those paid by large retailers. The digital euro is intended to be a mechanism that introduces legal cost caps to significantly reduce payment costs for merchants and force price competition in the private market by providing a common payment method across Europe.
Separating Holding Limits from Payment Functionality: Offline Payments and Commercial Banks
The operating mechanism of the digital euro is designed to strictly separate asset holding limits from payment functions. To prevent financial market instability or liquidity crises for commercial banks due to deposit withdrawals, there will be a cap on the amount that can be stored in digital wallets. However, for high-value purchases—such as buying a car—that exceed this limit, the shortfall will be automatically and instantly topped up from the customer’s linked commercial bank current account, ensuring there is no actual restriction on the payment amount.
Furthermore, an offline payment feature will be provided, allowing transactions via direct device-to-device contact, even during power outages or in areas with poor internet connectivity. Offline transaction data will not pass through a network but will be recorded only between the payer’s and recipient’s devices, ensuring a level of privacy equivalent to that of physical cash.
- Central Bank-Commercial Bank Division of Labor: The ECB will not open individual accounts for the public; existing commercial banks and licensed payment service providers will manage the distribution and customer relations for the digital euro.
- Integrated User Access: The system will support integration within existing commercial bank apps while also providing a standard, standalone app with essential Eurosystem-level features.
- Coexistence of Three Payment Methods: A sustainable tripartite system will be maintained, where physical cash (notes and coins), commercial bank deposit-based services, and the digital euro complement each other.
Multi-layered Cybersecurity and the ‘Pontes’ DLT Financial Integration Project
The technical infrastructure of the digital euro will be built entirely by European technology suppliers, utilizing multi-layered encryption, data segregation structures, and regular simulated cyber-attack assessments. Furthermore, system infrastructure will be distributed across various European locations to ensure service continuity in the event of a specific server failure.
Cipollone also announced progress on the DLT-linked project aimed at completing the Eurozone Capital Markets Union (CMU). On September 21, 2026, the Eurosystem officially launched the ‘Pontes’ project, which enables instant settlement of financial asset transactions on DLT platforms using central bank money. Following Pontes, the ECB plans to overcome the fragmentation of European financial markets by continuing with the ‘Appia’ project, which aims to build an integrated financial ecosystem, and by launching further private-sector technology competitions.
Official Source: Piero Cipollone: Interview with Milano Finanza