Brussels - European Central Bank Executive Board member Piero Cipollone addressed the European Parliament Committee on Economic and Monetary Affairs on the evolving landscape of euro payments.

Cipollone welcomed ongoing negotiations on the Single Currency Package and expressed optimism about the Parliament adopting its position soon. He highlighted two main updates since March: new agreements with European standard-setting bodies and preparations for a 2027 piloting exercise.

Reinforcing Access to Physical Cash

Access to cash remains central to the ECB mission, Cipollone noted. The joint treatment of cash legal tender rules and the digital euro proposal underscores that both forms represent the same currency using different technologies. He endorsed the cash legal tender proposal for ensuring uniform acceptance and availability across the euro area.

The ECB continues redesigning euro banknotes around themes of European culture or rivers and birds, with a final choice expected by year end. New notes featuring improved security and sustainable production methods are slated for release in the early 2030s.

Advancing Digital Euro Standards

On the digital euro front, Cipollone stressed the role of open standards in enabling seamless payments. Europe currently relies heavily on non-European card scheme standards, which raise costs and limit scalability for local solutions. The digital euro will introduce uniform European standards that all devices can adopt, allowing private payment providers to expand without repeated terminal upgrades.

In May the ECB signed cooperation agreements with three European standard-setting organizations. These agreements reuse existing open standards identified with market input, giving early clarity that reduces adaptation costs for merchants and payment service providers. Legal tender status through legislation remains essential to lock in these benefits across the euro area.

Preparing the Pilot Phase

The upcoming piloting exercise will test infrastructure in real conditions and gather participant feedback. Over 50 applications were received from payment service providers by mid-May, showing balanced representation across bank sizes, business models and countries. Selections will be announced in July, with development starting in the third quarter and the pilot itself in the second half of 2027.

Cipollone concluded by noting the 25th anniversary of euro notes and coins in 2027. Completing the Single Currency Package by then would affirm that cash and the digital euro together preserve payment freedom in Europe.