European Central Bank official: A European-led digital payments system is needed; a digital euro is key.

PANews reported on January 28 that, according to Cointelegraph, European Central Bank Executive Board member Piero Cipollone stated that escalating geopolitical tensions further highlight the need to establish a European-led digital payment system.

In an interview released by the European Central Bank on Wednesday, Piero Cipollone described the proposed digital euro as a "digital form of public money," noting that it is crucial to supplement cash and address Europe's increasingly fragmented payment landscape, especially against the backdrop of booming e-commerce. Cipollone pointed out that by 2024, cash transactions will account for about a quarter (24%) of daily transactions, a significant decrease from 40% in 2019. He stated that the ECB has a responsibility to adjust the way it provides money as a public good.

Piero Cipollone directly links this task to geopolitics, warning that the "weaponization of all possible tools" and the increasingly tense global situation underscore the necessity of establishing a European retail payment system that is "completely under our control," based on European technology and infrastructure, rather than non-European suppliers.