ECB explores conditional payments for digital euro without blockchain
ECB explores digital euro without blockchain
The European Central Bank (ECB) is advancing its exploration of conditional payments for the digital euro, a feature that could enable automatic transactions triggered by specific events.
Unlike traditional payments, which are primarily time-based, conditional payments would allow transactions to occur only when pre-set conditions are met, according to Crypto News.
ECB Executive Board Member Piero Cipollone emphasized that blockchain technology is not necessary for this innovation, stating that such payments could function on a traditional ledger.
In an interview with Reuters, Cipollone provided an example: train passengers could receive automatic refunds if their journey is delayed, eliminating the need to file a claim.
Expanding digital euro capabilities
The ECB’s initiative aims to push digital payments beyond simple scheduled transfers. “We think we can do better,” Cipollone said, explaining that the central bank has received an overwhelming response from industry players, with 100 proposals submitted for testing new conditional payment models.
The ECB plans to assess these proposals over the next six months before compiling a report on its findings. While the digital euro remains in development, its future depends on regulatory approval. Cipollone confirmed that the ECB is finalizing its rulebook, but the project’s implementation will rely on European Union legislation.
A final decision on advancing the digital euro is expected by November 2025, though full issuance remains uncertain. Additionally, the ECB continues to express concerns over stablecoins, particularly those pegged to the U.S. dollar.
Cipollone warned that their widespread use in Europe could shift deposits overseas, an issue that is drawing increased political attention. For now, the ECB remains focused on refining the digital euro’s design, exploring innovative use cases while ensuring compliance with European financial regulations.
Meanwhile, European crypto exchanges will remove non-compliant stablecoins ahead of the EU's MiCA deadline.
