Digital Euro Design and Privacy Protections

Piero Cipollone, a Member of the Executive Board of the ECB, discussed the design of the digital euro in an interview conducted by Lorenzo Torrisi. The interview was conducted on 10 August 2026 and published on 24 August 2026.

Enrico Letta — Extreme close-up of a microchip's circuitry with metallic pathways and connection points illuminated by soft directional light against a blurred background.
ECB's Cipollone: Digital Euro Won't Identify Users

“The Eurosystem would not be able to directly link specific individuals to digital euro transactions. It would not be able to identify users making or receiving payments. It offers the maximum level of privacy that current technology can offer. It offers greater protection for privacy than a bank transfer.”

Piero Cipollone

The digital euro is designed to function offline. Offline transaction details would only be available to the payer and the payee.

Banks involved in a digital euro transaction would still be able to identify users, including for anti-money laundering purposes. By comparison, in a bank transfer all transaction details are known to the parties involved.

The digital euro will not replace cash but will complement it. The European Parliament has approved the Regulation for the digital euro. A potential issuance date for the digital euro is 2029.

Highlights

  • The digital euro will not replace cash but will complement it.
  • Offline digital euro transaction details are only available to the payer and the payee.
  • The European Parliament has approved the Regulation for the digital euro.
  • A potential digital euro issuance date is 2029.

Monetary Policy and Economic Outlook

The ECB's statutory task is maintaining price stability. Its inflation target is 2%.

Euro area inflation is in line with the baseline scenario of the most recent projections, published last June. The ECB's most recent projections were published last June.

The European economy is described as slowing but more resilient than expected. The risk of stagflation is assessed as rather remote. The euro area currently has a current account surplus.

Broader European Reform Agenda

Mario Draghi authored a report on European competitiveness restrictions. Enrico Letta authored a report on European Single Market restrictions. The European Single Market has a population of 450 million.

The European Commission amended policy in early June to allow flexibility under the national escape clause for investing in energy security. Separately, the ECB has launched a public consultation on the design of new euro banknotes.