Is the digital euro entering the countdown? ECB officials promote "cash-level" CBDC, making European payment sovereignty the focus

On January 27, the European Central Bank (ECB) announced that it is accelerating the digital euro project and positioning it as an official digital currency tool that offers an experience close to cash. Piero Cipollone, a member of the ECB Executive Board, stated in an interview with German media that the digital euro is not only a convenient payment method but also an important pillar for Europe to maintain sovereignty in the global financial system.

Piero Cipollone emphasized that the digital euro will be as easy to use as cash, allowing free payments across Germany and the entire Eurozone, and will be accessible to all demographics, including users without smartphones and small retailers. He pointed out that in the future, all merchants supporting electronic payments will be required to accept the digital euro. Since the infrastructure will be provided by the ECB, the transaction fees merchants need to pay will be significantly reduced, which could change the current cost structure dominated by private payment networks.

Regarding the timeline, the ECB internally considers mid-2029 as a realistic launch window, indicating that the digital euro has moved from the proof-of-concept stage into actual deployment countdown. Contrary to market concerns, Cipollone stated that the project will not replace cash and coins; the digital euro is simply an additional option, and its basic usage will remain free.

More strategically, the focus is on “payment sovereignty.” Cipollone candidly mentioned that many daily transactions in Europe currently rely on technology systems outside the EU, which could be cut off in the event of geopolitical conflicts. He cited the case of an International Criminal Court judge who was unable to use credit cards after being sanctioned by the US, noting that if a digital euro had been available at that time, such cross-border payment restrictions could have been avoided.

The ECB also warned that some Eurozone countries lack domestic payment networks and are highly dependent on foreign systems for cross-border and online transactions. The digital euro will help Europe establish its own payment “track,” so that even if an international payment service provider withdraws, the flow of funds within the region will not be affected.

Against the backdrop of accelerating global central bank digital currency competition, Europe aims to strengthen its financial sovereignty through the digital euro and provide scalable infrastructure for domestic payment technology. This also means that the geopolitical and financial significance of the project far exceeds that of a simple payment tool.