Introducing the digital euro could cost European banks between €4 billion and €6 billion over four years.
Speaking to an Italian parliamentary committee, Piero Cipollone said the estimate, based on feedback from banks, represents roughly 3% of what lenders spend annually on IT system maintenance, News.Az reports, citing Reuters.
The ECB also expects the digital-only central bank currency itself to cost about €1.3 billion to set up, with ongoing operational expenses of around €300 million, though it was not specified whether that figure is annual.
The ECB is awaiting European Union legislation that would authorize issuance of the digital euro, a project the central bank sees as key to keeping public money relevant in an increasingly digital economy. Officials also view it as a way to unify Europe’s fragmented payments market and reduce reliance on non-EU providers, strengthening the bloc’s monetary sovereignty.
Cipollone said banks should be able to recover their implementation costs through fees charged to merchants for digital euro payment services. Under the proposed model, commercial banks would provide the smartphone applications consumers use to pay in digital euros.
Importantly, banks would not need to pass on network costs typically paid to private payment schemes because the ECB plans not to charge for its infrastructure.
Merchants are also expected to benefit. The ECB plans to cap digital euro payment fees below the levels currently charged by international card networks such as Visa and Mastercard.
The central bank is now selecting lenders to participate in the pilot phase ahead of a potential full launch in 2029, marking a major step in Europe’s push toward sovereign digital payments.