European Central Bank's Cipollone says digital euro boosts bank competitiveness

Piero Cipollone: Piero Cipollone is a member of the European Central Bank's Executive Board with responsibilities in payments, market infrastructure, and digital innovation. He recently delivered a speech on money in the digital age, outlining the ECB's approach to the digital euro and tokenization. His comments directly address the news by explaining that the digital euro will provide banks with common standards and a pan-European network to enhance competition. European Central Bank: The European Central Bank serves as the central bank for the euro area, overseeing monetary policy and financial stability across member states while advancing digital finance initiatives. It is preparing a digital euro to extend central bank money into the digital realm alongside private sector solutions. In the context of this news, ECB Executive Board member Piero Cipollone highlighted how the digital euro project supports European banks' competitiveness in payments and tokenized markets. Design Approach: The digital euro is structured to preserve the two-tier monetary system by having banks and regulated providers distribute it while developing complementary value-added services. Legislative Progress: Trilogue negotiations on the digital euro legislation are underway following positions adopted by the Council of the EU and European Parliament, with a goal of completion by the end of 2026. Complementary Initiatives: The ECB is advancing Pontes for settling tokenized asset transactions in central bank money and Appia to shape a broader European digital finance ecosystem in collaboration with the private sector.