ECB Director: "Geopolitical Risks Are Serious... Urgent Introduction of Digital Euro Needed"

Uk Jin

Summary

Piero Cipollone, an ECB executive board member, emphasized that the introduction of the digital euro is an essential measure to maintain control over financial infrastructure and strategic autonomy.
66% of electronic payments in Europe rely on American payment networks, highlighting the risks and the need for establishing its own payment system.
Cipollone pointed out that the spread of stablecoins could threaten Europe's financial stability and strategic autonomy, indicating the need for countermeasures.

It has been revealed that the need for a digital euro is consistently being raised within the European Central Bank (ECB).

According to the Wall Street Journal (WSJ) on the 8th (local time), Piero Cipollone, an ECB executive board member, met with committee members at the European Parliament on this day and emphasized, "Given the recent international situation, relying on overseas payment systems like Visa and Mastercard is risky."

In fact, it has been found that 66% of all electronic payments in Europe rely on American payment networks such as Visa and Mastercard. Cipollone expressed concern, saying, "Excessive reliance on the U.S. is not good," and "We could lose control over financial infrastructure."

He also argued that countermeasures against dollar-based stablecoins (virtual assets linked to the value of fiat currency) should be devised. Cipollone stated, "The new U.S. administration is recently encouraging virtual assets (cryptocurrencies) and stablecoins," and "Many companies are adopting stablecoins as a means of payment. Europe's financial stability and strategic autonomy are being threatened."