A ECB executive board member said the potential introduction of a digital euro ”would not to take over the role of banks,” but ensure they have a role in the EU’s monetary system.

A member of the European Central Bank’s (ECB) executive board has warned that other entities could provide alternatives without the central bank’s introduction of a digital euro, potentially weakening Europe’s “resilience and monetary sovereignty.”

ECB executive board member Piero Cipollone said on a Monday MNI Connect Webcast that without a “pan-European digital payment solution that caters to every type of day-to-day transaction,” the potential for fragmentation could increase across tokenization platforms. He said that the central bank’s goal should be to create a digital euro exchangeable across banks for day-to-day transactions.

“Our objective is not to take over the role of banks,” said Cipollone. “On the contrary, the digital euro would equip banks with the infrastructure they need to compete in the digital age and help them expand the reach and use cases of their own solutions.”

According to Cipollone, the ECB has not decided whether to issue a digital euro, but plans to conclude the legislative process by the end of 2026. Should the central bank move forward with the project, it will run a 12-month pilot program starting in the second half of 2027, with the potential for issuance in 2029.

The ECB first proposed introducing a digital euro in October 2020 as a central bank digital currency (CBDC) to complement cash as a digital payment option.

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