ECB's Cipollone urges EU to adopt the digital euro law by year-end, warning a delay could postpone its launch

European Central Bank (ECB) Executive Board member Piero Cipollone urged European Union lawmakers on November 10 to finish the law that would allow a digital euro by the end of the year, warning that "a delay in adoption could instead postpone the introduction of the digital euro," according to the text of his statement to the European Parliament's economic affairs committee in Brussels.

What Cipollone said about the digital euro law

The digital euro would be central bank money in digital form, designed for everyday payments and issued by the central bank alongside banknotes and coins, according to the ECB. It needs an EU regulation, which is part of a legislative bundle called the Single Currency Package. The European Parliament adopted its position on the package on July 9, and the final text is now being negotiated in talks known as trilogues, Cipollone said.

Cipollone said a quick end to those talks would allow the package to be adopted by the end of the year. That, he said, would give the ECB the legal certainty it needs to complete its preparations, and would give the market certainty about the planned date of a possible first issuance, which can be set only once the regulation is adopted.

A delay, he said, could postpone the introduction of the digital euro, deepen Europe's dependence on foreign providers, and make it harder for European companies to innovate and compete. His statement did not give a launch date.

The pilot planned for 2027

The ECB is preparing a pilot that will test the digital euro's technical functions, operating processes and user experience with a beta version that has no legal tender status. Starting in the second half of 2027, it will involve Eurosystem staff, payment service providers and selected merchants, for example in canteens at the ECB and participating national central banks, Cipollone said.

In July, the ECB announced the 36 payment service providers selected for the pilot from more than 50 applicants; they include banks and non-bank providers. It has also opened a call for online and mobile merchants to test remote payments, and the final selection of merchants will be announced early next year, he said.

Tokenized settlement is already running

Cipollone also pointed to Pontes, launched in September, which connects market blockchain platforms with the Eurosystem's TARGET Services so that tokenized transactions can settle in central bank money. He said 18 market participants and platform operators joined on the first day, and that on November 2 Pontes settled the European Stability Mechanism's first digitally native benchmark bond, a €1 billion issue.

Why it matters

The digital euro is a central bank project, not a crypto asset. In our assessment, it would enter a payments market that also includes privately issued stablecoins and international card networks. Cipollone framed the timetable as a matter of Europe's autonomy in payments.

The warning comes during a change at the top of the ECB: President Christine Lagarde will leave in February 2027, and euro-area governments are choosing between two candidates to succeed her.

What it could mean for traders

The statement contains no decision that directly affects crypto markets. In our assessment, it matters for the longer-term shape of European payments and for euro stablecoin issuers that would share the market with a central bank alternative. Work on settling tokenized securities is also under way in the United States, where a planned New York Stock Exchange venue will clear and settle trades on Avalanche technology, according to Ava Labs; that venue still needs regulatory approval. The next marker in Europe is whether the trilogue talks conclude before the end of the year.