ECB Plans Digital Euro for Eurozone Payment Continuity, Legislation Expected 2026

The European Central Bank (ECB) is advancing plans for a digital euro to ensure payment continuity during major disruptions such as cyberattacks or power outages, as emphasized by ECB board member Piero Cipollone. The digital euro would act as a resilient, universally accepted digital payment method, complementing cash, which remains the only true fallback but is increasingly less accessible. The ECB aims to have a legislative framework for the digital euro in place by the second quarter of 2026, reflecting its commitment to maintaining European payment sovereignty and fostering financial inclusion and innovation. Despite its potential benefits, the proposal faces skepticism in the European Parliament, with concerns about privacy, the impact on commercial banks, and competition with private sector payment solutions. Cipollone responded that the ECB would set limits on digital euro accounts to prevent destabilizing bank deposits and highlighted that cash will remain available alongside the digital currency. The ECB also envisions the digital euro supporting private sector innovation through open standards, which could enable more advanced payment services.