Digital Euro to Complement Cash, ECB Says Amid Crypto Growth

* Digital euro to complement physical cash, ensuring payment autonomy amid crypto growth. * ECB officials stress importance of public money in evolving financial landscape. On August 4, 2025, Bloomberg reported that European Central Bank (ECB) Executive Board member Piero Cipollone announced in a blog post that the digital euro will complement, not replace, physical cash. He stated this move safeguards payment autonomy and maintains the relevance of public money as private-sector digital currencies grow in influence. In the August 4 post, Cipollone reaffirmed that euro banknotes and coins will remain integral to the financial ecosystem. He explained that the coexistence of physical cash and a digital euro is essential to bolster Europe’s payment autonomy, which is particularly important as stablecoins and private digital currencies gain traction in retail and cross-border transactions. Cipollone emphasized that the digital euro provides a regulated, state-backed alternative to privately issued stablecoins, which have seen sharp growth in recent years. In April 2025, he argued that a digital euro could reduce Europe’s dependence on foreign currency stablecoins as a medium of exchange, and he also highlighted the importance of physical cash during crises when digital infrastructure may be vulnerable. However, public interest in the digital euro remains muted. An ECB study in March 2025 showed that survey participants allotted only a minimal portion of €10,000 to digital euro holdings. In response, other ECB officials, like adviser Jürgen Schaaf, advocate for stricter regulations on stablecoins, focusing particularly on those pegged to the U.S. dollar, which dominate international transactions. Schaaf considers the digital euro part of a broader strategy to promote locally regulated, euro-pegged stablecoins and distributed ledger technology applications. By the end of 2025, the ECB Governing Council will decide on the next phase of the digital euro's development. This decision is a critical step in adapting Europe’s monetary framework for the expanding digital financial ecosystem.