ECB Executive Board Member Highlights Urgency for Digital Euro

European Central Bank (ECB) Executive Board member Piero Cipollone emphasized the urgent need for digital euro regulation and the legal tender status of cash. This move aims to reduce the European Union's growing reliance on foreign payment systems, identified as a structural weakness.

Concerns Over Foreign Payment Systems

Cipollone raised concerns about the Trump administration's push for crypto-assets and dollar-backed stablecoins, warning of potential losses in fees and data, and the shifting of euro deposits to the US. This could further strengthen the dollar's dominance in cross-border payments.

Benefits of the Digital Euro

The digital euro is presented as a solution to provide European consumers with a safe, simple, and free digital payment option. It promises to protect privacy, cover all payment needs across the euro area, and shield merchants from excessive fees by international card schemes.