ECB official Piero Cipollone outlines digital euro timeline and offline payment capabilities in Milano Finanza interview
In an interview with Milano Finanza, European Central Bank official Piero Cipollone discussed the strategic necessity, timeline, and technical features of the proposed digital euro. Cipollone reported that a pilot involving real transactions by staff from the ECB and national central banks is slated for 2027, with a potential public rollout as early as 2029 depending on legislative approval in Brussels. The digital euro will feature offline capabilities, merchant fee caps, and strict holding limits to safeguard financial stability.
Key points
- A pilot program involving real transactions by staff of the ECB and national central banks is scheduled for 2027.
- A potential rollout could occur as early as 2029 if European regulations are approved.
- The digital euro will support offline payments between devices without an internet connection, functioning similarly to cash.
- Holding limits will apply to digital wallets to safeguard financial stability during crises, while payments themselves will remain uncapped.
What happened
In an interview with Milano Finanza, European Central Bank official Piero Cipollone provided updates on the ongoing legislative debates in Brussels regarding the digital euro and internal Eurosystem preparations. Cipollone emphasized that payments represent a strategic infrastructure for Europe, noting that online transactions in Italy grew from 6% of the total in 2019 to 24% in 2024, with two thirds of those payments handled by non-European card schemes.
Market move
The Eurosystem is advancing preparatory works with 36 market operators and has launched a second call for new ideas and projects to speed up innovation in the European payments industry. Furthermore, the Pontes project went live on 21 September 2026 to enable the settlement of financial transactions carried out on distributed ledger technology platforms using central bank money.
Why it moved
The development of the digital euro is driven by Europe's heavy dependence on third-party non-European operators for payment infrastructures. Cipollone stated that the digital euro will provide a secure form of public money that protects privacy, increases competition, and helps reduce fees for small merchants who currently face significantly higher costs than large operators.
Key numbers
A pilot program based on real transactions carried out by staff of the ECB and other national central banks is set for launch in 2027, with a possible public rollout as early as 2029 depending on the timing of regulatory approval. Additionally, 36 market operators are currently collaborating in preparatory works.
Why it matters
The digital euro aims to reduce Europe's dependence on non-European payment operators while introducing offline transaction capabilities and fee caps for merchants.
What we know
- European Central Bank official Piero Cipollone reported that a pilot based on real transactions carried out by staff of the ECB and other national central banks will be launched in 2027.
- Cipollone stated that the Pontes project went live on 21 September 2026, enabling financial transaction settlements on DLT platforms using central bank money.
- According to the interview, thirty-six market operators, including seven Italian firms, are collaborating in preparatory works for the digital euro.
- Cipollone noted that holding limits will apply to digital wallets, though payments will not be capped.
What remains unclear
- The digital euro could be rolled out as early as 2029 if the regulation is approved by the end of the year.
