European Central Bank officials emphasize the importance of the digital euro for the European digital payment system

Piero Cipollone, a member of the Executive Committee of the European Central Bank, stated that geopolitical tensions have highlighted the necessity of establishing a European led digital payment system. He described the digital euro as a "digital form of public currency" in an interview on Wednesday, and pointed out that it is crucial for supplementing cash and addressing the fragmentation of the European payment landscape, especially in the context of rapid e-commerce development. Cipollone mentioned that by 2024, cash transactions are expected to account for only 24% of daily transactions, a significant decrease from 40% in 2019. He emphasized that the European Central Bank needs to adjust the way currency is provided as a public good, and warned that global tensions have "weaponized all possible tools", therefore it is necessary to establish a retail payment system based on European technology and infrastructure, and avoid relying on non European suppliers.