A senior European Central Bank official has said the planned digital euro will strengthen the role of banks and support European payment systems rather than weaken them.
ECB Executive Board member Piero Cipollone stated that the project aims to preserve banks’ central position in the payments ecosystem as digital transactions continue to grow and the use of cash declines.
While some banks fear losing influence as the digital euro would be managed through central bank accounts, Cipollone argued that private solutions such as stablecoins pose a greater long-term threat to traditional banking roles.
He added that the digital euro would help banks retain access to valuable customer payment data, which is essential for offering financial services.
The initiative is also intended to support domestic payment networks like Spain’s Bizum and Italy’s Bancomat. Under the system, national schemes could issue cards that function across the eurozone through shared infrastructure.
Officials say the structure will ensure domestic networks remain cost-competitive compared with global payment giants such as Visa and Mastercard.
The ECB sees heavy reliance on international payment processors as a strategic vulnerability, with more than 75% of European transactions currently handled through foreign systems.
The digital euro is expected to launch in the second half of 2029, following recent political backing from both the European Parliament and the EU Council.
