Digital Euro as a Pillar of European Autonomy: The Path to Independence on the Global Payment Map

The future of European financial independence is taking shape through an ambitious plan to introduce a digital euro, which Piero Cipollone, a member of the Executive Board of the European Central Bank, presents as a key tool to strengthen the continent’s strategic position. On the map of global payment flows, Europe is in a position of increased dependence on external solutions, which must be systematically addressed.

Why is Europe’s reliance on external systems a critical weakness

Europe is currently heavily dependent on payment infrastructure controlled outside the EU, particularly on solutions like Visa, Mastercard, and PayPal. Cipollone highlighted the threat this dependence poses and the potential risks if concrete measures are not taken. This situation is not just a technical issue but a fundamental problem for the continent’s strategic autonomy in the digital economy. The lack of its own payment backbone increases the vulnerability of the European financial system to external pressures and decisions made by entities outside the EU.

Plan for implementing the digital euro: Specific timeline

The digital euro project is progressing according to a clear schedule. The pilot phase is planned for 2027, during which the system will be tested in a real environment and its functionality evaluated. The Central Bank expects the issuance of the digital euro to begin in 2029, moving this project from the theoretical stage to practical application. Cipollone emphasized that this is an initiative supporting the smooth operation of payment transactions and reducing systemic risks, not a reaction to any specific country or company.

Stablecoins as a threat to financial stability

EU regulators are aware of the growing influence of privately issued digital assets, particularly stablecoins. Cipollone warned that these solutions could threaten financial stability if operated without adequate oversight. Ensuring the public has access to a simple, reliable, and regulated euro-denominated alternative thus becomes a priority for market balancing. Public digital assets should serve as a counterbalance to unregulated private solutions and provide European citizens with a safer option.

Legislative obstacles and the path to project realization

The legal framework for the digital euro is still awaiting final approval by the European Parliament. MEPs are discussing various approaches, with some favoring solutions originating from the private sector. These legislative uncertainties are the main obstacle in the process, but ECB leaders remain convinced of the necessity of this step for European independence. Political support for the digital euro is gradually strengthening as awareness grows of the strategic consequences of prolonging dependence on external payment systems.