EU Plans Digital Euro Payments Even Without Internet Access

The European Union is planning for a future in which digital euro payments could be completed even in the absence of an internet connection, Piero Cipollone, member of the Executive Board of the European Central Bank (ECB), told MEPs from the European Parliament’s Committee on Economic and Monetary Affairs.

Cipollone emphasized that amid current geopolitical tensions and growing cyber threats, Europe requires an independent electronic payment system. He outlined that the first phase of the digital euro is expected to be completed by the end of the year. The new system will operate similarly to global private payment networks like Visa or Mastercard but will be backed by the ECB. Currently, Europe remains fully dependent on non-European private systems for cashless transactions.

The digital euro is designed to complement, not replace, cash. Cipollone noted that it will ensure people’s freedom to pay with money issued directly by the ECB while maintaining resilience in times of disruption. “The euro must be future-proof. Cash will remain important, and the digital euro will serve as a complement. People should be able to make payments even during major crises. Existing non-European systems limit our ability to respond quickly and independently, especially in emergencies,” he said.

Highlighting the importance of payment systems, Cipollone compared them to essential utilities like electricity and clean water. The proposed digital euro infrastructure will span at least three separate regions, each equipped with multiple servers. In case of cyberattacks or regional disruptions, payments would be rerouted to maintain continuity. Additionally, if a bank is unable to operate, the ECB’s electronic payment application will allow transfers through unaffected banks.

Cipollone also acknowledged challenges for citizens without smartphones or those who struggle with applications. Efforts are underway to develop accessible technologies, including voice-controlled functions for the ECB app. Support for vulnerable groups, including blind and deaf users, is being considered, with free assistance potentially provided in libraries and post offices to facilitate the use of the European digital payments system.

The digital euro initiative seeks to ensure universal access to reliable, secure, and independent cashless payment options across the EU, even in the face of technological failures or cyber threats.