During a recent address at the European Parliament in Brussels, European Central Bank (ECB) board member Piero Cipollone emphasized the critical need for a digital euro to ensure seamless payment capabilities during major outages. He highlighted that a Eurozone central bank digital currency (CBDC) could act as a safeguard in the event of cyberattacks impacting banks or other payment processors.
Cipollone explained that such a digital currency would enable customers to maintain access to their accounts even if their bank’s app experienced downtime. “If a cyberattack caused the outage of a bank’s own app, but the bank’s backend services were still functioning, customers would still be able to access their accounts with that bank through the ECB’s digital euro app,” he asserted.
Further enhancing the digital euro’s potential, Cipollone noted that if the app incorporated offline functionality, it could serve as an essential resource during power outages, where traditional payment systems might falter. “Cash is our only true fallback…but as society increasingly moves away from cash, and as cash itself may be difficult to access in emergencies, we need to complement it with a digital version,” he remarked.
This push for a digital euro aligns with a broader global trend, as central banks worldwide are exploring the feasibility of digital currencies. The ECB’s consideration of a digital euro is also motivated by the growing competition from stablecoins and non-bank payment services, which have captured significant portions of the payment market through platforms like Apple Pay, Google Pay, and PayPal.
As discussions around the digital euro continue, the focus remains on creating a resilient and efficient payment system capable of withstanding challenges posed by technological disruptions and societal shifts away from traditional cash transactions.
