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

Conditional payments in the digital euro could expand beyond scheduled transfers, though they do not require blockchain technology, an ECB official says.

The European Central Bank sees strong potential in digital euro payments that only happen when certain conditions are met, going beyond just scheduled transfers, says ECB executive board member Piero Cipollone.

For conditional payments transactions only execute if a condition is met, Cipollone told Reuters, adding that with nowadays payments “there is only one type… based on 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 experiment with new ideas. We will be doing that for the next six months and we will then prepare a report.”

Piero Cipollone

Blockchain isn’t needed for these transactions, Cipollone said, as they could even work “on a traditional ledger.” He gave the example of train passengers automatically receiving refunds if their train is late, instead of having to file a claim.

The digital euro project is still moving forward, though the launch date is far from certain. The ECB has begun selecting suppliers, though contracts will only be triggered if the Governing Council approves the currency, Cipollone explained. The digital euro’s rulebook “is almost done,” Cipollone said, though he added that its implementation will depend on the approval of EU legislation.

Addressing stablecoins, the ECB official says they remain a concern for the central bank, especially if used for payments in Europe. Cipollone warned that reliance on dollar-based stablecoins could shift deposits to the U.S., noting that “the political world is becoming more alert to this.” A decision on moving the digital euro project forward is expected by November 2025, but actual issuance will depend on whether legislation is in place.