Thomas Daniels
According to ECB Executive Board Member Piero Cipollone, the European Central Bank (ECB) sees a lot of opportunity for conditional payments utilizing the digital euro that go beyond regular transfers. Notably, these transactions can take place on conventional ledgers and do not require blockchain technology.
According to Cipollone, conditional payments are only made when certain requirements are satisfied. “The majority of today’s payments are dependent on time-based requirements, such sending a certain amount on a certain day. We think we’re capable of more,” he told Reuters. He cited instances such as automatic reimbursements for passengers on delayed trains, which do away with the need for laborious claims.
There is widespread interest in testing conditional payment methods, as evidenced by the 100 ideas for possible applications that the ECB has received. Cipollone stated that a thorough report will be provided after the six-month testing period.
The digital euro’s launch date is still unknown despite continuous advancements. Although the ECB has begun choosing suppliers, contracts won’t be finalized until the currency is approved by the Governing Council. According to Cipollone, the regulation for the digital euro is almost finished, but EU legislation is required before it can be implemented.
Cipollone addressed concerns over stablecoins by cautioning that a greater use of dollar-pegged stablecoins for European payments may cause deposits to move to the United States, which would raise economic and regulatory issues. He observed that political awareness of this problem was rising. Though its release is still pending parliamentary approval, a final decision about the digital euro project’s advancement is anticipated by November 2025.
