The European Central Bank (ECB) has reiterated its intentions to introduce a digital euro to provide citizens with a reliable payment option. However, the initiative has faced skepticism among EU lawmakers.
Digital Euro as a Crisis Backup
ECB board member Piero Cipollone emphasized that much of the EU’s current digital payment infrastructure is dependent on external providers, which limits Europe's autonomy in crisis situations. The digital euro is proposed as a reliable backup during cyberattacks or network outages. He also noted that the digital euro will complement physical cash, which remains vital for economic resilience.
Privacy and Banking Risks Highlighted
Some lawmakers expressed concerns regarding the privacy implications associated with the digital euro. They worry that citizens might prefer to hold accounts with the ECB, potentially destabilizing commercial banks. Cipollone reassured that the ECB would not have access to transaction details and stated that the offline capabilities of the digital euro would provide privacy protection equivalent to cash. However, critics, including Eurosceptic member Pierre Pimpie, voiced concerns that the digital euro could lead to an outflow of deposits from private banks.
Legislative Timeline and Implementation
The ECB plans for legislation enabling the digital euro to be finalized by mid-2026. This process involves approval from the European Parliament, European Commission, and the European Council. Following the legislation, the ECB anticipates designing and testing the digital euro’s infrastructure, a phase expected to last up to three years. If all proceeds as scheduled, the digital euro could launch around 2029.
Thus, despite the plans for the introduction of the digital euro, unresolved questions regarding privacy and the impact on private banks remain, which could affect the support for this project in the European Parliament.
