The European Central Bank is exploring the possibility of enhancing the functionality of the digital euro through the introduction of conditional payments that go beyond standard scheduled transfers.
Potential of Conditional Payments
ECB executive board member Piero Cipollone stated that conditional payments, such as automatic refunds for delayed trains, could significantly improve the convenience of using digital euro. Such transactions only execute when certain conditions are met.
Technological Implementation Aspects
Cipollone noted that blockchain technology is not required for conditional payments. They can be implemented on traditional ledgers, making it more broadly applicable.
Prospects and Challenges for Digital Euro
The digital euro project is in progress. Supplier selection has begun, but contracts will be activated only after the ECB Governing Council approves. A final decision on moving the project forward is expected by November 2025, but issuance will depend on EU legislative approval.
The digital euro could open new possibilities for payments, but its successful implementation will hinge on legislative approval and technological support.
