Key insights
- The ECB is unconcerned about a delay in the European Parliament vote on the digital euro. The ECB aims to reduce reliance on US payment firms like Visa and Mastercard. While the direct impact on US equities is limited, increased regulatory scrutiny on payment firms and stablecoins could create headwinds.
Investing.com -- European Central Bank Executive Board member Piero Cipollone said he is not concerned about a potential postponement of a European Parliament vote on the digital euro from early May to late June.
Speaking at a virtual discussion with the Peterson Institute for International Economics on Wednesday, Cipollone referenced recent reports suggesting lawmakers will likely vote on June 23, rather than the previously scheduled May 5 date.
"We have been patient for three years, it doesn’t cost much to wait a couple more months," Cipollone said. "As long as we have a final legislation by the end of this year, we will be able to respect our timeline."
The European Parliament’s economic and monetary affairs committee is dealing with divergent views on the digital euro. A key point of contention is whether to launch both online and offline versions or only the offline option, despite the plenary voting in February to support both formats.
Member states reached a common position on the digital euro in December. The ECB has indicated the digital currency could launch in 2029, contingent on legislation being finalized this year. The central bank plans to begin a 12-month pilot phase in the second half of 2027.
ECB policymakers have voiced concerns about Europe’s dependence on US payment companies such as Visa (NYSE:V) and Mastercard (NYSE:MA), as well as dollar-pegged stablecoins supported by President Donald Trump.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.