Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Piero Cipollone, a member of the Executive Board of the European Central Bank (ECB), announced during a meeting of the Executive Committee of the Italian Banking Association that by the end of March, the European financial regulator will select payment service providers (PSPs) for the digital euro.
Cipollone indicated that a new phase of testing for the digital euro, which will last for 12 months, is scheduled for the second half of 2027. According to ECB estimates, the launch of the digital euro could occur in 2029. In October, the regulator stated that the digital euro might be introduced as early as 2027, contingent upon the passage of relevant legislation by the end of 2026.
The pilot project will involve a limited number of merchants and payment providers licensed in the European Union. They will have the opportunity to explore the operational process of the digital euro, from client onboarding to transaction processing and liquidity management. Companies will be able to assess the anticipated costs associated with integrating the digital euro infrastructure and meeting regulatory requirements, as noted by the ECB board member.
Related Posts
According to Cipollone, the central bank digital currency (CBDC) aims to maintain the crucial role of European banks in the payments market. The digital euro is designed to protect local services such as the Italian debit card system Bancomat and the Spanish mobile payment system Bizum from competition posed by international payment giants like Visa and Mastercard, the official stated.
“Banks risk losing control over payments due to stablecoins and other private solutions, particularly given Europe’s reliance on foreign, non-European payment systems. To prevent this, transaction fees for processing payments in the digital euro will be significantly lower than those typically charged by international payment companies to merchants,” Cipollone remarked.
Previously, Cipollone assured that the digital euro would provide individuals with a high level of privacy when making online payments and would even be more private than certain stablecoins. However, the digital euro will not offer interest payments to avoid competing with banks.
