ECB’s Cipollone sets out digital-euro pilot plans and possible merchant savings

The European Central Bank has selected 36 applicants for a digital-euro pilot, Executive Board member Piero Cipollone said in an interview published by the ECB on 8 October 2026. Tests are expected in 2027 as the bank prepares a potential euro-area payment alternative that he says could reduce merchants’ costs, although a possible 2029 introduction remains conditional.

The interview with Corriere della Sera was conducted by Daniele Manca on 23 September. Its publication offers an account of preparations described that day, rather than confirmation of subsequent progress. Asked whether the digital euro could arrive in 2029, Cipollone answered yes, but added: “This is not just a technical matter, and not everything is up to the ECB.”

Digital-euro pilot tests expected in 2027

Cipollone said the pilot project had launched during summer 2026. The ECB signed agreements to establish technical standards in April and received nearly 60 applications in May for participation in the following year’s pilot, including applications from several Italian banks. It selected 36 applicants, whose identities are not listed in the interview.

He expected initial tests next year and the first payments in less than 12 months from the September interview. Those payments would belong to the testing stage; the timetable does not establish when the service would become available to the general public.

What digital-euro payments could cost merchants

Cipollone presented the digital euro as a public alternative for merchants who, he argued, often face opaque and high card-payment fees with limited choice. He cited 570,000 merchants employing almost two million people in Italy, saying squeezed margins can force businesses to pass payment costs on through prices.

“For small merchants, the cost of accepting digital payments could be halved,” he said. The interview gives no calculation or defined fee baseline for that projection, so it should not be read as measured savings or a guaranteed reduction for individual businesses.

A separate legislative proposal addresses charges. In its negotiating position agreed on 19 December 2025, the Council of the European Union proposed caps on merchant and interchange fees based on comparable payment methods for at least five years, followed by caps based on actual digital-euro costs. That proposal does not establish a 50% saving.

Cipollone also said the digital euro could be integrated into European private payment services, extending their use across the euro area, including places where they are not currently accepted. He named Italy’s Satispay and Bancomat as participants in the ECB’s work, without detailing their individual roles.

Apps, cards and offline payments alongside cash

For individuals, Cipollone described an app supplied by the ECB, a bank or another payment service provider in which users could hold digital euros. People without a phone would also have a card option. These are planned arrangements rather than services established as operational for the public.

He said the digital euro would complement cash and be free for individuals. As evidence of the ECB’s continuing commitment to banknotes, he pointed to work on a new series with different designs and updated anti-counterfeiting features.

The Council’s December 2025 position separately barred consumer charges for specified basic services, including opening accounts and making payments, while allowing fees for some added-value services. Those distinctions describe its negotiating position, rather than final legislation.

Cipollone described offline payments that would transfer money directly between devices without an internet connection or intermediaries. He presented this as useful during internet or power disruptions. The interview does not establish performance during an actual outage or explain the devices’ power requirements.

Legislation and an ECB issuance decision still matter

The Council’s December 2025 account said issuance would ultimately require an ECB decision after the European Parliament and Council adopted the legal framework. Its position also proposed holding limits to protect financial stability, set by the ECB within a Council-agreed ceiling reviewed at least every two years. It specified no numerical limit.

The accompanying cash proposal sought to protect acceptance and access, with exceptions including online purchases and unmanned points of sale. Member states would monitor cash availability and prepare for severe electronic-payment disruptions. These were proposed protections, not evidence that the legislative process had concluded.

Cipollone linked the project’s urgency to European strategic autonomy and dependence on outside payment operators. For businesses, he described an intended system accepted by every merchant accepting digital payments, including physical shops. He stressed fitting its introduction into normal system-update cycles; the interview does not establish an enacted acceptance obligation.

The ECB interview sets out the planned testing and payment features. The Council’s December 2025 statement provides the earlier legislative position, including proposed fee and holding limits; it does not confirm their final form in October.