The European Central Bank is stepping up its calls for the creation of a digital euro, aiming to counter the growing dominance of US dollar-backed stablecoins in the region.
In a fresh statement published on April 8, ECB Executive Board member Piero Cipollone emphasized the urgency of introducing a central bank digital currency (CBDC) to protect the eurozone’s control over its own financial system.
According to Cipollone, a digital euro would reduce the risk of US dollar stablecoins gaining widespread traction as a go-to payment method in Europe. This, he argued, is essential to maintaining the euro’s role and limiting foreign influence on the continent’s monetary landscape.
“We Need a Sovereign European Payment Solution”
Cipollone stressed that Europe’s growing reliance on external payment systems — whether in the form of stablecoins or global card networks — undermines its monetary independence. He warned that the absence of a sovereign digital payment alternative would leave the region exposed to strategic and economic vulnerabilities.
“The lack of action could lead to missed opportunities and increased risks,” Cipollone said, underlining the need for collaboration between public institutions and private entities to launch a digital euro rooted in EU law.
He also pointed out that the United States’ increasingly crypto-forward approach, including active promotion of dollar-based stablecoins, poses additional concerns. Cipollone warned that this could result in capital outflows from the eurozone, data migration to foreign platforms, and even a decline in the euro’s relevance in international payments.
Cash Still Matters — But Not Online
Cipollone acknowledged the continued importance of cash in supporting financial inclusion and economic resilience. However, he noted that digital transactions have overtaken cash in many areas — especially as online shopping now represents around a third of retail spending in Europe.
“As cash isn’t usable online and many European payment services are not accepted for digital purchases, people are increasingly turning to non-European options,” he said.
To address this shift, Cipollone called for immediate progress on both digital euro legislation and a framework recognizing the legal status of cash, saying these measures are critical to strengthen Europe’s financial autonomy.
Public Hesitancy Remains
Despite the ECB’s push, public reception to the idea of a digital euro remains lukewarm. A recent ECB study from March revealed that many Europeans see little benefit in adopting a CBDC, with concerns over data privacy being a major sticking point.
Nevertheless, Cipollone insists that action is necessary — not just to innovate, but to ensure Europe retains control over its economic future.
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