Digital Euro: Benefits for Cyprus and Offline Payments

The digital euro could significantly reduce payment costs for small businesses in Cyprus, according to Piero Cipollone of the European Central Bank (ECB), as stated to the Cyprus News Agency (CYPE).

Mr. Cipollone mentioned that the digital euro would limit Europe's dependence on non-European payment providers. He also emphasized that Europe needs to develop resilient, domestic payment infrastructures.

The digital euro is designed as a digital form of cash, extending its use to e-commerce. It will allow payments everywhere in Europe, as well as offline payments, even without electricity or connectivity.

The introduction of the digital currency depends on European legislation, with a possible vote in the European Parliament in May. Pilot programs could start in 2027, and the issuance of the digital euro by mid-2029.

The ECB has incorporated safeguards to address concerns about bank liquidity. The digital euro will not bear interest, and there will be holding limits. Privacy and data protection are key priorities.

Regarding monetary policy, Mr. Cipollone stated that the euro's exchange rate is not a policy target but is taken into account in the ECB's analysis.

Source: CYPE