Digital euro to cost EU banks 4-6 billion euros over 4 years, ECB estimates

Advertisement Business Digital euro to cost EU banks 4-6 billion euros over 4 years, ECB estimates FILE PHOTO: European Central Bank executive board member Piero Cipollone speaks to journalists in Rome, Italy, February 18, 2026. REUTERS/Matteo Minnella/File Photo 19 Feb 2026 08:47PM (Updated: 19 Feb 2026 08:52PM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST MILAN, Feb 19 : Introducing the digital euro could cost European banks between 4 billion and 6 billion euros ($4.7-$7.1 billion) spread over four years, a senior European Central Bank policymaker said on Thursday.ECB Governing Council member Piero Cipollone also said the new digital‑only central bank currency which the ECB is working on is estimated to cost around 1.3 billion euros to set up.Operational costs would then be about 300 million euros, he added, without specifying whether this figure refers to an annual amount.The ECB is awaiting European Union legislation to issue the digital euro, which it sees as a way to keep public money relevant in a digital economy, unify Europe's fragmented payments landscape and curb the role of non-EU providers to protect the bloc's monetary sovereignty and economic security. Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday. This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners. Loading BANKS WILL BE ABLE TO RECOUP COSTS, CIPOLLONE SAYS "Estimates we've come up with based on indications we received from banks point to implementation costs of between 4 and 6 billion (euros) over four years: that is about 3 per cent of what they spend every year on IT‑system maintenance," Cipollone said.He was speaking to an Italian parliamentary committee on banks on the digital euro project, which he oversees under his payments remit at the ECB.Banks will be able to make up the costs through the fees they receive from merchants on the digital euro services they will provide.It will be banks that give users the smartphone application needed to pay with digital euros.Banks, however, won't have to deduct from the merchants' fees the costs they normally bear to remunerate private payments networks because the ECB won't charge for its network service.The ECB is currently at work to select lenders that are interested in taking part in the pilot phase of the digital euro ahead of its official launch in 2029. Merchants, in turn, will save money because there will be a cap on the fees charged on digital euro payments and the cap will be below what international firms such as Mastercard or Visa charge at present. ($1 = 0.8488 euros) Source: Reuters Newsletter Week in Review Subscribe to our Chief Editor’s Week in Review Our chief editor shares analysis and picks of the week's biggest news every Saturday. Sign up for our newsletters Get our pick of top stories and thought-provoking articles in your inbox Subscribe here Get the CNA app Stay updated with notifications for breaking news and our best stories Download here Get WhatsApp alerts Join our channel for the top reads for the day on your preferred chat app Join here Advertisement Also worth reading Content is loading... Advertisement Expand to read the full story Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST