The European Central Bank has offered fresh details about the digital euro project following a new episode of the ECB podcast featuring executive board member Piero Cipollone. The discussion outlined how the central bank intends to modernize public money, strengthen European payment sovereignty, and launch the first controlled pilots in 2027 based on current legislative timelines.
Cipollone stressed that consumer behavior continues to shift toward digital payments across the euro area. According to the ECB, cash use in shops has declined sharply since 2019 while online payments have surged. He said the digital euro is intended to extend the functions of cash to online and offline digital environments where public money is currently not available.
Cash Will Remain and Disinformation Persists
Cipollone directly addressed claims circulating online that the digital euro would replace cash. He said the ECB is investing in new banknote designs and strongly supports legislation aimed at preserving access to cash. He emphasized that the central bank’s mandate is to offer reliable public money in all its forms with citizens free to choose how they pay.
He also highlighted ongoing efforts to counter disinformation including narratives amplified by foreign actors. The ECB argues that the digital euro is designed to increase choice rather than limit it and that privacy protections are central to the project.
Privacy by Design and Bank Level Controls
The podcast focused extensively on privacy, which the ECB identifies as the most important requirement expressed in user research. Cipollone explained that banks will continue to handle customer identity verification and anti money laundering controls. The ECB ledger would store only anonymized codes representing payer and payee along with the transaction amount. He said these codes cannot be linked to an individual and that internal access to data will be tightly segregated and subject to audits by independent authorities.
Offline transactions will function locally on user devices without any data shared with the central bank. This is intended to provide cash like privacy in situations where no internet or electricity is available.
Supporting European Banks and Payment Innovation
Cipollone said the digital euro is not designed to displace private sector offerings. Instead it will provide a common European payment infrastructure that banks and fintechs can build on. He said this would reduce dependence on non European payment schemes and allow local providers to offer services across the EU at lower cost.
The ECB and industry partners have also tested conditional payments and other programmable features that could allow businesses to automate reimbursement, ticketing, and other processes. Cipollone said banks see new commercial opportunities in this area and that the digital euro could provide the foundation for broader innovation.
Timeline and Legislative Process
The ECB has now entered its preparation phase, during which it will build core infrastructure and technical standards. Cipollone said pilots could begin in mid 2027 if EU legislation progresses as expected. Lawmakers are working to finalise their positions in 2026 with trialogue negotiations likely to begin in the summer.
A launch in 2029 remains subject to the successful completion of the legislative process and the results of the pilot phase.