The member of the executive board of the European Central Bank (ECB), Piero Cipollone, detailed this Saturday (13) the schedule for the implementation of the digital euro, projecting the effective launch of the currency for 2029.
During participation in the event, the executive explained that, if the necessary legislation is approved by the end of 2026, the technical infrastructure will be built in the first half of 2027, allowing the experimentation phase to begin in September of the same year.
Cipollone initially stressed that he would not comment on interest rates or monetary policy due to the period of silence that precedes the next ECB steering committee meeting, scheduled for Thursday (18).
Regarding the system’s architecture, the director emphasized that the ECB will not have access to citizens’ private data, refuting concerns about state surveillance or spending control. “The information processed by the Central Bank will be encrypted, technically preventing the institution from linking payments to specific individuals. The management of customer data and anti-money laundering controls will remain the exclusive responsibility of commercial banks, which will act as intermediaries in the distribution of digital currency, maintaining the current banking relationship model”, he declared.
Cipollone also addressed the costs of implementing the project, dividing them between the public and private sectors. The planned investment is 1.2 billion euros, an amount that the monetary authority hopes to recover through seigniorage associated with the issuance of the currency.
For the European banking system, a total cost of between 4 and 6 billion euros is estimated, spread over four to five years. “The impact on financial institutions represents approximately 3.5% of the sector’s annual expenditure on information technology, which is a manageable investment,” he stated.
The main economic advantage highlighted by the director was the elimination of so-called flag fees (scheme fees) in transactions with the digital euro, a currently significant cost in payments intermediated by international cards. The legislation under discussion foresees that these cost savings will be passed on, at least partially, to traders, especially benefiting small businesses that operate with narrow profit margins.
In addition to the digital agenda, Cipollone commented on the global trend of gold accumulation by central banks. He noted that annual purchases of the precious metal have jumped from a historical average of 400 to 600 tonnes to around 1,000 tonnes in the past three years. “This movement reflects the monetary authorities’ search for a safe store of value against inflation and systemic financial risks, complementing the credibility of fiat currencies in a scenario of global uncertainty,” he said.
