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The European Central Bank has entered the final stage of the preparation phase for the digital euro as EU lawmakers advance the required legislation. The move follows growing concern over Europe’s reliance on foreign payment systems for daily digital transactions. ECB officials say the project aims to preserve access to central bank money as cash use declines across the euro area.
The update comes from an interview conducted on 6 February 2026 with Piero Cipollone, a member of the ECB Executive Board. He confirmed that no digital euro has been issued and that issuance will wait for full legislative approval. At the same time, Cipollone explained why the ECB views the project as necessary for citizens and businesses.
As the European Parliament moves closer to finalizing the legal framework, the ECB positions the digital euro as a public alternative. The system would complement existing payment options rather than replace commercial banks, which raises one central question: Can a digital version of cash preserve payment freedom in an increasingly online economy?
The ECB continues to describe the digital euro as digital cash rather than a cryptocurrency or investment product. Officials state that it represents a direct extension of sovereign money into digital use cases. This includes online payments where physical cash currently cannot function.
Cipollone explained that central bank money offers a level of trust unmatched by private payment providers. Yet, cash use faces limits in online commerce and digital services. The digital euro would allow citizens to use central bank money in those settings.
According to the ECB, the design mirrors key features of cash while adapting to modern needs. Users could rely on one payment tool across the euro area. This structure aims to maintain freedom of choice in how people pay.
For citizens, the ECB identifies simplicity as the main benefit of the digital euro. One device could support payments across Europe for online and in-person transactions. The system would work consistently across borders and use cases.
For businesses, especially small firms, the ECB points to lower payment acceptance costs. Today, merchants often pay high fees to international card and payment networks. A public digital payment option could reduce those expenses.
Cipollone noted the importance of small businesses in economies such as Cyprus. Lower transaction costs could support their daily operations. The ECB states that savings would apply mainly to routine retail payments.
The ECB also links the digital euro to strategic resilience. A large share of euro area digital payments currently relies on U.S.-based networks. This dependence exposes Europe to external technical and geopolitical risks.
Building a European payment rail, the ECB aims to secure continuity. The digital euro could function during outages or disruptions affecting foreign providers, also serving as a European fallback system for digital payments. During the final preparation phase, the Eurosystem plans further technical work.
This includes privacy protections, system interoperability, and offline functionality. The ECB states that low-value payments would maintain high privacy standards while meeting regulatory requirements for larger transfers.
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The European Central Bank has entered the final preparation stage of the digital euro as EU lawmakers advance key legislation. The project aims to deliver digital cash, reduce reliance on foreign payment systems, and lower costs for users. Legislative approval will determine the next steps.
