Piero Cipollone, a member of the executive board of the European Central Bank (ECB), recently spoke about the key benefits of the digital euro, arguing that the project would be able to bolster Europe's financial sovereignty. 

Cipollone warned about a future scenario, in which Alipay, the largest mobile payment platform in China, would be the only available payment option for Europeans. 

He noted the popularity of cash continues to decline steadily, with digital payments emerging as the increasingly dominant option. 

Hence, there is a risk of Europeans becoming increasingly dependent on non-Europena payment platforms. 

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A sovereign digital payments system would increase Europe's financial resilience, according to Cipollone.

The project, which has been years in the works, is expected to be available to everyone in the euro area. Notably, it will be possible to use the digital euro both online and offline.

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On top of that, a digital euro would be beneficial for smaller merchants who often struggle to secure better conditions from payment providers. This puts them at a disadvantage compared to larger merchants. 

Cipollone has also provided updates on the current state of the project, which entered the investigation phase all the way back in 2021.

Now, the ECB is in the process of finalizing the rulebook for the digital euro project as well as some of its technical aspects. 

The governing council of the ECB will announce its decision on whether the project will be ready for the next phase next year.

As reported by U.Today, Fabio Panetta, a member of the European Central Bank's Governing Council, recently took aim at Bitcoin and Ethereum, arguing that the two biggest cryptocurrencies by market cap have no intrinsic value.