Digital Euro, ECB breakthrough: offline app, more sovereignty in payments

Piero Cipollone raises the bar: the digital euro project includes the development of a public app with offline payments, supported by a geodistributed infrastructure designed for system resilience. The stated goal of the ECB is to strengthen European payment sovereignty and reduce dependence on foreign networks, thus confirming its commitment to financial stability and strategic autonomy.

According to the data collected by our editorial team during interviews with market operators and developers, managing offline flows requires technical compromises between latency, privacy, and security. Industry analysts note that geodistributed resilience and the ability to operate even without connectivity have been shared priorities since the start of the investigation phase on the digital euro in 2021. Considering that the euro area has about 340 million inhabitants, universal access remains one of the central objectives of the project.

In September 2025, during the phase where the project preparation continues – awaiting the final legislative framework within the EU – work is underway to ensure universal access to central bank money even in the digital environment. That said, although the preparatory phase is now underway, some sources, such as Reuters, indicate an official launch of the digital euro closer to 2029, after the completion of technical tests and regulatory approval.

The message from the ECB: digital euro as an extension of cash

During his recent speech, Cipollone described the digital euro as an extension of the currency issued by the central bank in the digital environment. It is not a cryptocurrency, but rather public money in electronic form: in fact, it aims to offer the same freedom of choice between physical and digital cash, as highlighted by the official communications of the ECB, maintaining continuity with existing instruments.

The strategy aims to increase competition among payment services, promote cross-border scalability for European banks and fintechs, and ensure interoperability with existing payment schemes. In this context, alignment with common standards is considered a key lever for a more efficient market.

Expected Benefits of the Digital Euro

• Payment Sovereignty: less dependence on non-European schemes.
• Cost reduction: an increase in competition should lead to lower fees for merchants and consumers.
• Inclusive access: guaranteed availability regardless of the service provider, with a broader user base.
• Push for innovation: the adoption of common standards will encourage the development of new services throughout the euro area.

Architecture, resilience, and offline mode

The ECB is designing a distributed infrastructure across multiple regions to avoid the classic single point of failure. At the center of the system is a European app capable of enabling a rapid switch between providers, eliminating the risk of lock-in and supporting service continuity. Among the main innovations is the offline functionality, which will allow citizens to perform transactions even in the absence of connectivity, thus ensuring continuity of payments in case of blackouts or cyber attacks and contributing to digital inclusion in areas with limited network coverage.

• Distributed and resilient infrastructure.
• App for accessing and managing funds, fully public and interoperable.
• Offline payments to ensure operations in emergency situations.
• Compatibility with existing systems and European standards.

Geopolitics and Competition: Why It Matters for Europe

The ECB claims that the digital euro strengthens control over critical payment infrastructures. The reduction of foreign intermediations should result in greater autonomy and a significant reduction in systemic costs, creating an environment of greater competition. However, the point is not just technological: promoting local fintech can make the European ecosystem more competitive at an international level.

What is the digital euro (quick definition)

The digital euro represents an electronic form of central bank money intended for citizens and businesses to make payments throughout the euro area. It is designed to maintain the freedom of choice between physical and digital cash, while simultaneously improving the security and resilience of the financial system, with an infrastructure designed for everyday use.

Privacy, limits, and stability protection

The ECB has adopted a privacy by design approach, integrating enhanced protection measures even for offline use. Among the additional measures under consideration are limits on balances and operational thresholds aimed at preventing massive shifts of deposits from commercial banks, to balance the needs of confidentiality, anti-money laundering, and financial stability. It should be noted that the balance between user protection and system integrity remains central.

Risks and Mitigations

• Interruptions or cyberattacks: they will be countered thanks to geographical redundancy and the adoption of advanced controls, with operational continuity plans.
• Banking Disintermediation: it will be managed through the introduction of operational limits and calibrated incentives, avoiding excessive impacts on deposits.
• Slow adoption: the issue will be addressed by ensuring interoperability and cost transparency, thus minimizing entry friction.
• Complex Governance: the distribution of roles among the ECB, payment service providers (PSP), and legislators is carefully defined.

Timeline and Next Steps

In September 2025, the preparation phase of the digital euro continues, with the development of prototypes, definition of interoperability requirements, and specifications for offline functionality in collaboration with market operators, pending the adoption of the final EU legislative framework. That said, the decision on a potential issuance could materialize later, with some forecasts predicting the official launch around 2029, as indicated by specialized press sources.

Why this shift is relevant now

The introduction of an app with offline capabilities and the adoption of a distributed architecture represent a significant leap forward both technically and politically. With a more resilient system that is less dependent on external infrastructures, the digital euro can become the European standard for digital payments, offering new efficiencies to citizens and merchants and strengthening the continent’s economic sovereignty. In this context, regulatory alignment will be crucial.