TL;DR
- Geopolitics: Cipollone warned that rising global tensions and the “weaponisation” of tools make a European‑controlled payment system essential to reduce dependence on foreign providers.
- Mandatory Use: He emphasized that the digital euro’s legal tender status means merchants accepting digital payments “will have to accept” it, raising concerns about a state‑imposed CBDC framework.
- Private Sector Gap: Cipollone rejected delaying the project, arguing that only a digital euro with a single standard will push banks and fintechs to build a pan‑European payments layer.
Rising geopolitical friction is reshaping Europe’s debate over monetary control, and ECB executive board member Piero Cipollone is positioning the proposed digital euro as a strategic shield. In comments shared through El País, he framed the project as “public money in digital form,” arguing that Europe must respond to declining cash use and a fragmented payments landscape. His remarks also revealed a deeper concern: global tensions are turning payment systems into tools of leverage, and Europe risks exposure if it continues relying on non‑European providers.
Geopolitical Tensions Drive ECB Push for Control
Cipollone warned that the “weaponisation of every conceivable tool” has made a European‑controlled retail payment system a necessity. He argued that Europe should not depend on foreign schemes for essential financial infrastructure, especially as e‑commerce expands. Cash accounted for only 24% of day‑to‑day transaction value in 2024, down from 40% in 2019, and he said the ECB must adapt how it provides money as a public good.
His framing cast the digital euro as a sovereignty project rather than a market‑driven innovation, raising concerns among critics who view CBDCs as government‑centric solutions that risk crowding out private alternatives.
Mandatory Acceptance Raises Market Concerns
Cipollone highlighted that the digital euro would carry legal tender status, meaning any merchant accepting digital payments “will have to accept” it. This effectively creates a mandatory acceptance regime, a point that intensifies skepticism among those wary of government‑issued digital currencies. Critics argue that such requirements tilt the playing field toward a state‑run instrument at the expense of private sector competition.
ECB Rejects Delays Despite Private Sector Gaps
He dismissed calls to postpone the digital euro’s project until a private pan‑European solution emerges, noting that the ECB has urged industry players for years to deliver one. Instead, he claimed that a single, open standard could finally push banks and fintechs to build a unified retail payments layer. Opponents counter that introducing a CBDC first risks entrenching state dominance rather than encouraging innovation.
Cipollone also rejected suggestions for an offline‑only version, arguing that Europe lacks a viable payment method for e‑commerce and that offline systems cannot address online needs. His comments followed a Jan. 11 letter from 70 economists urging lawmakers to prioritize public interest and avoid further delays that could deepen reliance on non‑European providers.
