Piero Cipollonea member The European Central Bank (ECB) The Board of Directors spoke at the Generali Executive Series on the accelerating digital transformation of money, payments and finance. His remarks highlighted how technological changes are reshaping the payments landscape and outlined the Eurosystem’s strategic response to promote payments. integrationsignificant advances and durability.
Cipollone noted: payments It is rapidly evolving due to widespread digitalization and emerging technologies such as distributed ledger technology (DLT).
These changes require a proactive approach to create a harmonious European payments market that promotes competition, reduces external dependencies and strengthens overall system resilience.
The ECB’s comprehensive payments strategy gives a clear direction to this evolution.
Their main goal is to create an integrated, forward-looking structure. payments environment, protecting the healthy transmission of monetary policy and financial stability, and ensuring the uninterrupted operation of payment systems.
All relevant policies and projects are organized under this single, consistent framework.
The flagship element is the digital euro, designed as a digital form of cash for everyday retail use.
This system, which can be accessed online and offline across the eurozone, will complement physical cash and give citizens and businesses greater freedom to choose between the two.
Distribution will intensify EU-licensed payment service providers; banks play a central role in maintaining trustworthy customer relationships.
Appropriate and adequate measures such as holding limits, no interest on balances, controlled funding and fund allocation options, and no holdings for businesses will provide protection. financial stability.
Standardized acceptance networks and a common ID card will create valuable synergies with existing custom solutions, while banks receive fair compensation for their distribution efforts.
Positioned as public infrastructure digital euro It will set clear standards on which private providers can build, enabling local and regional solutions to achieve seamless access across Europe without major new investments.
This approach keeps central bank money at the heart of retail while driving innovation payment system.
Project timelines are progressing steadily.
Following previous research and preparation phases focusing on design, testing and experiments, the current phase focuses on technical preparation, deeper market dialogue and legislative process.
The 12-month pilot application is planned to start in the second half of 2027.
The ECB aims to be ready for potential issuance in 2029, but the final decision will be made after the necessary regulations are adopted. EU arrangement.
The pilot himself is not biased towards this conclusion. Cipollone also examined tokenization in wholesale and capital markets.
Current systems suffer from fragmented ledgers and differing national rules. custody and taxation and incompatible technologies that trap liquidity in silos. DLT-based shared and interoperable ledgers can deliver greater efficiency, faster processes and new opportunities for issuers, brokers and investors.
Eurosystem It counters with private assets as well as tokenized central bank money to serve as a secure, final means of payment.
Pontes, which will be launched in September 2026, will be connected DLT from platforms directly to TARGET services. Appia, a public-private partnership, will develop a broader tokenized ecosystem, with a detailed plan expected in 2028.
These tools address scalability limits stablecoinsreducing disintermediation risks, ensuring regulatory compliance, and promoting integrated, liquid markets for digital assets.
Finally, ECB Work on cross-border payments continues in line with G20 targets.
Efforts include: TARGET Instant Payment Settlement (TIPS) Establishing fast payment platforms through bilateral and multilateral connections outside Europe and Bank for International Settlements Project Agorá testing multiple currencies residential platforms.
Thanks to these coordinated initiatives, ECB It is said to be now getting ready Improving the euro area’s payment and financial infrastructure for a more digital future, while maintaining stability, efficiency and public trust. central bank money.
