ECB sees ‘huge potential’ in conditional payments with digital euro but without blockchain

Conditional payments in the digital euro could extend beyond planned transfers, although they do not require blockchain technology, according to an ECB official.

The European Central Bank sees great potential in Digital euro Payments that only occur when certain conditions are met, going beyond scheduled transfers, explains Piero Cipollone, member of the BCE board of directors.

For conditional payment transactions only execute if a condition is met, Cipollone said to ReutersAdding that with payments today “there is only one type … depending on the time: pay this amount to this person on this date. We think we can do better than that. »»

“We were surprised to receive 100 offers. People want to experience new ideas. We will do it for the next six months and then prepare a report. »»

Pine cipollone

Blockchain It is not necessary for these transactions, said Cipollone, because they could even work “on a large traditional book”. He gave the example of train passengers receiving reimbursements if their train is late, instead of having to submit a complaint.

The Digital Euro project is still forward, although the launch date is far from some. The ECB has started to select suppliers, although contracts are only triggered if the board of directors approves the currency, said Cipollone. The Digital Euro Rules Book “is almost finished,” said Cipollone, although he added that his implementation will depend on the approval of EU legislation.

Addressing the Stablecoins, the head of the ECB says that there remains a concern for the central bank, especially if it is used for payments in Europe. Cipollone warned that the dependence on stablecoins based on a dollar could move deposits in the United States, noting that “the political world is more and more attentive to this”. A decision to advance the Euro Digital project is expected by November 2025, but the actual program will depend on the establishment of legislation.