ECB official: Geopolitical tensions are increasing the need for a ‘digital euro’

Piero Cipollone, a member of the European Central Bank (ECB) Executive Board, said that geopolitical tensions are heightening the need to introduce a central bank digital currency (CBDC).

According to the ECB on the 28th, Cipollone said in a recent interview with Spanish outlet El País that “the prospect of geopolitical tensions and the reality that almost everything can be weaponized is clearly increasing the level of risk,” adding that “this raises the need for a Europe-only payment system built on European technology and infrastructure—one that is fully under our control.”

He stressed that “that is why we are pushing the digital euro.” The digital euro is the ECB’s CBDC and is scheduled for a pilot rollout in 2027. Cipollone said, “Citizens can decide for themselves how to use the digital euro alongside private payment instruments,” adding, “It is our responsibility to provide a means of payment that meets Europeans’ demand and avoids excessive dependence.”

He also touched on the outlook for the economy. Cipollone noted that “gross domestic product (GDP) has shown solid growth, and inflation has stayed near the target in recent months,” adding that “we are clearly in a good place.” He continued, however, that “uncertainty could increase and pose risks to investment, which could affect the resilience of the recovery,” and warned that “if uncertainty persists, it will have a negative impact on the real economy.”