The European Central Bank (ECB) has emphasised that its proposed digital euro will enhance Europe’s resilience against cyber threats and infrastructure disruptions while ensuring broad access to digital payments.
Piero Cipollone, a member of the ECB’s Executive Board, told the European Parliament that resilience and inclusiveness are central to the project. The digital euro is intended to complement physical cash, providing spare capacity alongside private payment systems.
Safeguards include multi-region transaction processing, a mandatory ECB-run app, and offline functionality to allow peer-to-peer payments during network or power outages.
The ECB also highlighted the importance of accessibility. Millions of Europeans with visual or hearing impairments or limited digital literacy could benefit from adaptive interfaces, voice commands, large-font displays, and mandatory support from payment providers.
Public institutions such as post offices and libraries may offer free assistance for those less familiar with digital tools.
Lawmakers received the ECB’s 14th update on the digital euro, underscoring the central bank’s commitment to combining security, inclusivity, and technological innovation in Europe’s evolving payments landscape.
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The European Union is accelerating work on a digital euro after the United States introduced new legislation to regulate the $288 billion stablecoin market. Brussels officials warn the euro may lose ground to dollar-backed tokens without swift action.
Sources told the Financial Times that regulators are revisiting issuing the digital euro on public blockchains such as Ethereum or Solana. Privacy concerns had blocked the option, but US developments have led Europe to reconsider.
The European Central Bank warned that reliance on foreign payment systems could weaken Europe’s financial sovereignty. A digital € would provide strategic autonomy, countering the risk of deposits flowing abroad and reinforcing the euro’s role in international settlements.
China has already rolled out its digital yuan, while the UK is evaluating a digital pound. The US market is dominated by companies such as Circle and Tether, with banks like Citi and JPMorgan preparing their own tokens.
Although smaller euro stablecoins exist, ECB officials say a digital € would cement Europe’s competitive position in the evolving global financial system.
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Cash will stay central to the eurozone’s financial system, the ECB confirmed, as work on the digital euro moves forward. A board member Piero Cipollone said euro banknotes and coins will be supplemented, not replaced, by a digital version to protect payment autonomy in Europe.
The ECB’s commitment follows a surge in the use of private digital currencies and stablecoins, which are increasingly used for daily transactions and international transfers. They see the digital euro as a secure answer to the rising influence of foreign stablecoins, especially US dollar-backed ones.
Despite the digital push, Cipollone stressed cash is vital, especially in crises when digital systems might fail. The ECB wants Europeans to have access to physical cash and digital euros alike, all with legal tender status and full usability.
Meanwhile, the ECB has acknowledged lukewarm interest from the public. A March study revealed Europeans were reluctant to allocate significant funds to a digital euro.
Separately, ECB adviser Jürgen Schaaf warned that Europe must implement unified regulation to avoid dominance by US dollar-backed stablecoins and preserve monetary sovereignty.
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The XRP community is abuzz after crypto influencer Amelie claimed Europe is trialling the digital euro on the XRP Ledger. Citing the Frankfurter Stock Exchange, she suggested institutional interest is growing rapidly, potentially leading to a sharp price increase.
In her tweet, Amelie included a video featuring analyst Oliver, who predicted XRP could reach $18 within weeks.
Oliver pointed to XRP Ledger’s speed and scalability as key factors that could meet the European Central Bank’s needs for a digital euro. He claimed successful testing would spark broader adoption and a surge in market value.
XRP was trading at $3.04 at the time of the post, meaning a rise to $18 would mark a 492% increase.
Such a leap would require strong capital inflows and confirmation of real-world adoption. Although no official statement has been released by the Frankfurter Stock Exchange, the speculation has fuelled excitement in the XRP community.
Amelie concluded that 2025 could be pivotal for XRP. Analysts believe the asset’s growing role in tokenisation and cross-border payments could soon extend into central bank digital currencies, potentially solidifying its institutional appeal.
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Fabio Panetta, the Governor of the Bank of Italy, has emphasised that a digital euro is more effective than regulation alone. It can better address the growing risks associated with cryptocurrencies.
In his annual economic remarks, Panetta said the EU must advance the CBDC project to protect financial stability and meet growing demand for secure digital payments.
Panetta noted that the Markets in Crypto-Assets Regulation (MiCA), which came into full force in late 2024, has had minimal influence on stablecoin adoption in Europe.
Only a small number of electronic money tokens (EMTs) have been issued, with limited circulation and little interest from supervised intermediaries in Italy. Although MiCA encourages transparency, it has not stimulated significant crypto development in the region.
The governor also warned that European citizens remain exposed to risks due to inconsistent regulatory standards worldwide.
He urged stronger international cooperation, saying only a central bank-backed digital euro can ensure trust, efficiency, and security in digital payments.
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At a recent speech in Berlin, European Central Bank President Christine Lagarde highlighted the potential of the euro to take on a greater international role amid growing uncertainty in the global monetary system. With the dominance of the US dollar increasingly under scrutiny and central banks turning to gold at levels unseen in decades, Lagarde outlined how a digital euro could be pivotal in shifting the balance of global finance.
Lagarde emphasised that the euro already accounts for around 20% of global foreign exchange reserves but still lags far behind the US dollar’s 58%. She argued that a more internationally accepted euro would shield Europe from exchange rate volatility, reduce borrowing costs, and help protect the EU from coercive economic measures.
One of the key steps in this direction is the ongoing development of a digital euro—an initiative the ECB is pursuing to modernise cross-border payments and reinforce the euro’s international utility. The ECB President noted that trade alone won’t be enough to elevate the euro to global reserve status.
For the euro to increase its global status, we need to build on three foundations:
Investors also need confidence in Europe’s geopolitical strength and legal institutions. She linked the US dollar’s global standing to its economy, military alliances, and legal predictability—areas where Europe must step up.
A digital euro, supported by robust capital markets and legal credibility, could become a cornerstone in this strategy. Lagarde concluded with a call for bold action.
The global economic landscape is shifting, and Europe must seize this ‘global euro moment.’ But success is not guaranteed, she warned.
For the euro to rise as a true rival to the dollar, the EU must act decisively, invest in unity, and deliver on reforms that inspire trust and stability, both politically and economically.
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The ECB has renewed its push for a digital euro to counter the growing dominance of US dollar-backed stablecoins in Europe. Piero Cipollone, an ECB executive board member, has raised concerns over the growing popularity of these stablecoins.
He argues that a central bank digital currency (CBDC) would protect the eurozone’s monetary sovereignty. Cipollone argued that a digital euro would prevent foreign currency stablecoins from becoming widely used in the euro area.
He warns that Europe’s reliance on foreign payment systems undermines its financial sovereignty. Concerns have arisen over the US’s push for dollar-backed stablecoins.
ECB called for a public-private partnership to create a digital euro, preserving European monetary independence under EU law.
Despite these efforts, the digital euro faces opposition, particularly over concerns around data privacy and consumer adoption. ECB acknowledges that digital payments are becoming increasingly prevalent, especially for online transactions.
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Eurozone finance ministers have raised concerns over the United States’ shift towards embracing cryptocurrencies, warning that it could pose risks to Europe’s monetary sovereignty and financial stability.
The discussion follows President Donald Trump’s executive order to establish a strategic reserve of cryptocurrencies using government-owned tokens, signalling a major policy shift from the previous administration.
Officials stressed the importance of accelerating the European Central Bank‘s plans to launch a digital euro to maintain control over the region’s financial system.
The head of the European Stability Mechanism, Pierre Gramegna, warned that the United States stance could encourage major technology firms to relaunch digital payment systems using dollar-backed stablecoins, potentially challenging the euro’s dominance in the global financial system.
Eurozone leaders are concerned that a resurgence of stablecoin-based payment platforms could undermine the euro and increase reliance on US-backed digital assets.
Policymakers emphasised that Europe must take proactive steps to safeguard its financial autonomy, ensuring that the euro remains a strong and stable currency in an increasingly digital economy.
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Christine Lagarde, President of the European Central Bank (ECB), has confirmed the bank’s target to finalise preparations for the digital euro by October 2025. However, the project’s actual launch remains uncertain, as it hinges on legislative approvals and cooperation from various stakeholders. Despite the urgency, the ECB is facing delays due to the complexity of the legislative process.
The digital euro will consist of two components: a retail version for public use and a wholesale version for financial institutions. The retail version promises privacy protections, free transactions, and offline functionality, while the wholesale arm aims to streamline interbank settlements and cross-border payments. Although preparations are underway, experts predict that a full launch may not occur until 2028.
Privacy concerns and potential impacts on commercial banks are among the challenges the ECB is addressing. To reassure the public, the ECB has committed to strong privacy standards and is exploring blockchain technologies like Ethereum to underpin the digital euro. The project comes as global competitors, such as China’s digital yuan and the rise of US stablecoins, intensify the pressure on Europe to maintain its monetary sovereignty.
While the ECB is making significant strides, the final approval and launch of the digital euro will depend on future legislative decisions and overcoming technical hurdles. The timeline remains uncertain, but the ECB’s preparations signal that the eurozone is keen to remain competitive in the digital currency space.
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The European Central Bank is stepping up its efforts to build a blockchain-based payments system, a move which could pave the way for a digital euro. Announced on Thursday, the initiative will unfold in two phases. The first phase will involve developing a platform for settling transactions in central bank money through a link with the TARGET system, which already facilitates payments across the eurozone.
The ECB plans to explore a more integrated, long-term blockchain solution for processing central bank money transactions in the second phase. Executive Board member Piero Cipollone described the project as a step towards improving European financial markets through innovation. The ECB believes this approach could strengthen Europe’s monetary system while reducing dependence on non-European payment providers.
The push for a digital euro aligns with the ECB’s broader goal of unifying Europe’s capital markets. Since 2021, the bank has been studying how to design and distribute a central bank digital currency (CBDC). As it refines its blockchain-based system, the ECB will consult with public and private stakeholders to ensure it meets the needs of European citizens. The full timeline for implementation will be announced at a later stage.
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