European payments sovereignty moved back to the top of the policy agenda Thursday (Jan. 29) as European Central Bank (ECB) Executive Board Member Piero Cipollone said the digital euro would provide the retail payments infrastructure the euro zone currently lacks, per Reuters. The ECB’s approach has drawn criticism from parts of the banking sector, with concerns that a retail central bank digital currency (CBDC) could compete directly with commercial lenders. Cipollone pushed back, saying the digital euro would create a single payments infrastructure while keeping banks central to distribution and data. 2026 is shaping up as a decisive year, with legislative deadlines looming and wholesale CBDC infrastructure — such as the ECB’s Project Pontes — advancing faster than retail initiatives. While political resistance remains in parts of the European parliament, institutional preparation for a digital euro has continued.