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# ECB Board Members Tout Digital Euro as Banks' Strategic Edge
- URL: https://www.theglobalbanker.com/ecb-board-members-tout-digital-euro-as-banks-strategic-edge/
- Published: 2026-03-27T18:32:41.000Z
- Updated: 2026-10-01T23:24:46.000Z
- Description: ECB Executive Board members Piero Cipollone and Frank Elderson position the digital euro as a vital investment in Europe's monetary sovereignty, urging banks to embrace it for resilience against big tech and stablecoins.
- Author: TGB Editorial Team
- Tags: Central Banks, Europe

European Central Bank Executive Board members Piero Cipollone and Frank Elderson have framed the digital euro not as a rival to commercial banks, but as a cornerstone for strengthening their business models in a fiercely competitive digital payments landscape. In a commentary published on March 27, 2026, the duo emphasizes that this central bank digital currency brings central bank money into the digital age, serving as a springboard for innovative digitalisation strategies in retail payments and strengthening bank business models in the face of growing competition.

The post, titled "Digital euro: an opportunity for banks," appeared on the ECB's Supervision Blog. Cipollone and Elderson underscore the digital euro's role in bringing central bank money into the digital age. "The digital euro brings central bank money into the digital age," they write, adding that it serves "as a springboard for innovative digitalisation strategies in retail payments and strengthens bank business models in the face of growing competition." The authors set out to answer key concerns raised by the banking industry.

#### DISPELLING BANK COMPETITION FEARS

Cipollone and Elderson counter this head-on: "Some worry that the digital euro may lead to central banks competing with commercial banks. The opposite is true." Instead, they argue, the digital euro provides opportunities for banks to strengthen their position in a digitalised economy, where innovation is the key to staying competitive. Through the Euro Retail Payments Board, where all stakeholders including banks are represented, the Eurosystem held in-depth discussions and workshops on how the digital euro could fit into the payment ecosystem.

Through workshops and discussions with supervision experts, the ECB identified pathways to "future-proof bank business models in retail payment services." They identified two avenues to strengthen bank business models: co-badging with domestic schemes and establishing common European standards, so that banks can use the digital euro's infrastructure to give their account-to-account payment solutions instant reach across the euro area. Co-badging would allow European debit cards to function seamlessly across borders without relying on international schemes for uncovered use cases. "By co-badging with the digital euro, debit cards offered by European banks could be used all across Europe," the ECB officials explain, likening the second avenue to a "USB-C cable we use for charging our phones"—a universal standard enabling broad compatibility.

These features hinge on forthcoming European standards, once legislation provides the necessary certainty. Private initiatives could then adopt the digital euro's front-end infrastructure pre-launch, upgrading payment terminals to expand bank services even before issuance. Banks will manage digital euro accounts, enabling them to maintain their existing business models by preserving strong, long-term customer relationships.

#### COUNTERING STABLECOIN THREATS

Today some innovative services are offered by non-banks, and the digital euro will help banks compete with these players by providing a European infrastructure that will enable them to develop innovative payment solutions that they can offer on a European scale. The digital euro positions banks centrally by having them manage accounts and layer services atop its infrastructure, retaining relationships.

This aligns with broader supervisory priorities. ECB Banking Supervision has been involved in the Eurosystem’s digital euro project from the beginning. This ensures that its in-depth expertise on bank business models, liquidity and overall financial stability is leveraged in order to shape a digital euro that is fit for purpose for achieving public objectives, without placing an excessive burden on banks.

#### PATH TO LEGISLATIVE CERTAINTY

Legislative adoption remains the linchpin. Once secured, it enables standards' finalization and terminals' upgrades, allowing merchants to go "digital euro ready." This legal certainty will enable private payment initiatives to start using the digital euro’s front-end infrastructure even before the digital euro is issued. As merchants upgrade their payment terminals, new devices can be made digital euro ready, allowing European banks to expand the reach and range of use cases of their private solutions even before the ECB issues the first digital euro. Cipollone and Elderson pledge continued collaboration: "We aim to continue working closely with the banking industry to make the digital euro a joint success, while preserving financial stability."

The authors write that "our economies will only be as competitive, autonomous and resilient as the payment systems that underpin them." Banks have a crucial part to play in future-proofing the European payment landscape. That is why the Eurosystem has put them at the heart of the digital euro’s design since the start of the project. 

The authors describe the digital euro as Europe's best investment in strategic autonomy in payments, monetary sovereignty and societal inclusivity. They argue the digital euro was designed to serve banks "not as a threat, but as an opportunity" in retail payments, and write that bank business models must be ready to meet the future head-on, matching the challenges faced and making the most of the opportunities that a rapidly changing world will bring.