Nicosia, Cyprus. European Central Bank executive board member Piero Cipollone said the digital euro could help reduce payment costs for small businesses and lower Europe’s reliance on non-European payment providers.
Cost and resilience arguments for a digital euro
In an interview with the Cyprus News Agency, Cipollone said the digital euro would help lower payment costs for small businesses burdened by expensive international card schemes. He said non-European payment providers currently handle nearly 70 per cent of card transactions, and argued that Europe should act now to build resilient domestic payment infrastructure rather than deepen dependence on external companies.
Digital version of cash and expanded use cases
Cipollone described the digital euro as a “digital version of cash” intended to preserve the simplicity and freedom of physical money while extending its use to areas where cash is no longer practical. He said cash cannot be used in many use cases and cited e-commerce as an example of where a digital euro could allow people to keep the simplicity of cash while paying for use cases not covered today.
Benefits cited for citizens and businesses
For citizens, Cipollone said the main benefits would be simplicity and choice, with a single payment solution allowing people to pay anywhere in Europe for all use cases while maintaining “the freedom to pay as you wish”. For businesses, particularly small and medium-sized enterprises, he said the digital euro could significantly reduce the cost of accepting digital payments.
Legislative timeline and potential rollout
Cipollone said the project remains conditional on EU legislation, but that progress is accelerating, with the European Parliament expected to vote on its position in May. He said this could pave the way for pilot projects in 2027 and issuance of the digital euro by mid-2029.
Cyprus highlighted as a case with high card scheme costs
Cipollone said the benefits could be especially pronounced in Cyprus due to its heavy reliance on international card schemes. He said that for small merchants, accepting payments through international card schemes is very expensive, and that costs for small businesses can be three to four times higher than for larger merchants.
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