The European Central Bank is renewing its campaign for a digital euro, framing it not as a technological experiment, but as a vital defense of Europe’s monetary sovereignty. With U.S. dollar-pegged stablecoins gaining traction across the continent, ECB executive board member Piero Cipollone has argued that only a central bank digital currency can effectively counter their growing influence.
In a statement published on the ECB’s official website, Cipollone stated that the introduction of a digital euro “would limit the potential for foreign currency stablecoins to become a common medium of exchange within the euro area.” His remarks continue a broader pattern of concern from European officials about the proliferation of stablecoins, particularly those denominated in dollars, and the strategic implications for the eurozone’s financial autonomy.
Cipollone has consistently warned against overreliance on non-European payment systems and platforms. He believes that such dependence weakens the euro’s position in both domestic and cross-border transactions. “It also underscores the urgent need for a digital euro,” he explained. “Failing to act would not only expose us to significant risks but also deprive us of a great opportunity.”
His statement emphasized that unchecked adoption of dollar-based stablecoins could lead to more than just lost market share. “They could potentially result not just in further losses of fees and data,” he cautioned, “but also in euro deposits being moved to the US and in a further strengthening of the role of the dollar in cross-border payments.”
To address these risks, Cipollone advocates for a public-private partnership anchored by the digital euro, which would function as “a sovereign European means of payment based on EU legislation.” In his view, this digital currency would serve as a counterbalance to foreign-dominated financial services and restore European control over key payment infrastructures.
At the same time, Cipollone reasserted the importance of physical cash in the eurozone’s financial landscape. Calling it a “cornerstone of the European financial system” and “its only sovereign means of payment,” he acknowledged its role in promoting financial inclusion and resilience. However, he also recognized its limitations in a world increasingly dominated by online commerce. “Cash cannot be used online,” he noted, “and it is often not possible to pay using a European payment service, meaning we need to rely on non-European payment systems.”
The urgency, according to Cipollone, lies not only in protecting the euro’s role but also in reducing dependence on foreign technology. “The time to act is now,” he concluded. “Making progress on both the digital euro regulation and the regulation on the legal tender status of cash has become urgent if we are to increase our resilience to possible disruptions and reverse our ever-increasing dependence on foreign companies.”
Still, despite these appeals, the digital euro faces an uphill battle in terms of public perception. A working paper released by the ECB in March showed tepid interest among European consumers, with concerns primarily centered around data privacy and unclear utility. Even so, the institution appears committed to pressing forward, positioning the digital euro not only as a modern payment tool but as a pillar of economic independence in an increasingly competitive global financial environment.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist