MILAN, Feb 18 (GeokHub) — The planned digital euro will be structured to protect European banks and strengthen domestic payment networks, according to Piero Cipollone, a member of the Executive Board of the European Central Bank.
Speaking to Italy’s banking association, Cipollone said the central bank digital currency (CBDC) is designed to preserve banks’ central role in the euro zone’s payments ecosystem — not replace it.
The digital euro would represent a form of central bank money available electronically to consumers and businesses. Because it would be issued and managed directly by the ECB, some commercial banks have expressed concerns about losing influence over customer payments and transaction data.
Cipollone argued that the shift toward digital payments — and the rise of private alternatives such as stablecoins — already poses risks to banks’ traditional roles. In that context, he said, the digital euro could help ensure banks remain at the core of the system.
He noted that losing control of payments would not only reduce banks’ fee income but also limit their access to valuable customer transaction data, which supports broader financial services.
Protecting Domestic Payment Networks
The ECB also intends for the digital euro to support national payment schemes across Europe. Cipollone highlighted examples such as Italy’s Bancomat and Spain’s Bizum.
Under the proposed structure, merchant fees for digital euro transactions would be capped below the levels typically charged by international payment networks, while remaining slightly above the fees associated with domestic schemes.
“The digital euro will effectively favour domestic payments schemes,” Cipollone said, explaining that the pricing model is intended to strengthen European alternatives.
Currently, only eight of the 21 euro area countries maintain national payment systems. The rest rely largely on international networks such as Visa and Mastercard, which together process the majority of European card transactions.
Strategic and Political Momentum
The ECB has described heavy reliance on foreign payment providers as a strategic vulnerability, particularly amid shifting global economic relationships.
After a prolonged legislative delay, the European Parliament recently expressed its first major backing for the digital euro framework. In December, the EU Council also endorsed the initiative, calling it a key pillar of Europe’s economic security and emphasizing that it should be available for everyday payments across the euro area.
