Piero Cipollone, Member of the Executive Board of the ECB, addressed the Committee on Economic and Monetary Affairs of the European Parliament in Brussels on February 14, 2024. He emphasized his commitment to actively engage in dialogue with the European Parliament regarding the digital euro. Cipollone highlighted the importance of ensuring that both the euro and the monetary union remain relevant in the digital age. The Single Currency Package aims to achieve this by ensuring widespread accessibility and acceptance of cash, while also introducing a digital option for central bank money payments. Cipollone stressed the importance of protecting the freedom to use a public means of payment, as expressed by mayors of various communities who have raised concerns about limited access to ATMs.
The discussion of a digital euro is timely, as the European Parliament is currently debating the European Commission’s legislative proposal, and the Eurosystem has initiated the digital euro preparation phase. Cipollone assured that the ECB’s Governing Council will not make any decisions regarding the issuance of a digital euro until the legislative act has been adopted. He also emphasized the ECB’s commitment to transparency and accountability throughout the process, providing continuous updates on the progress of the digital euro.
Cipollone provided updates on four key issues in the preparation phase of the digital euro. Firstly, the selection process has begun to find potential providers who could develop a digital euro platform and infrastructure. Secondly, the development of a digital euro rulebook is underway, which will define the rules, standards, and procedures for its implementation. Thirdly, measures are being taken to ensure the stability of the financial system, with safeguards in place to preserve the role of central bank money in payments. Lastly, Cipollone highlighted the importance of privacy in digital payments and outlined the design features of the digital euro that prioritize privacy protection.
In conclusion, Cipollone emphasized that the digital euro is a collective European project aimed at preserving the freedom to use a public means of payment and strengthening resilience and autonomy in a global environment. He expressed the ECB’s commitment to supporting the work of the European Parliament and engaging with all stakeholders to build the future of the digital euro.