The European Central Bank (ECB) is exploring the potential of conditional payments in the digital euro, a concept that could revolutionize the way transactions are conducted without the need for blockchain technology. According to ECB executive board member Piero Cipollone, conditional payments in the digital euro would only be executed when specific conditions are met, going beyond the traditional scheduled transfers.

Cipollone explained to Reuters that current payment systems are limited to time-based transactions, where a set amount is transferred to a designated recipient on a specific date. However, he believes that there is room for improvement in this area. “We think we can do better than that,” he stated.

The ECB has received significant interest in this innovative approach, with Cipollone revealing that they have already received 100 offers from individuals and organizations eager to experiment with new ideas. The ECB plans to explore these possibilities over the next six months and will then compile a report on their findings.

Interestingly, Cipollone emphasized that blockchain technology is not necessary for these conditional payments to function effectively. He suggested that they could operate on a traditional ledger, citing the example of train passengers automatically receiving refunds if their train is delayed, without the need to file a claim.

While the digital euro project is still in progress, the launch date remains uncertain. The ECB has started selecting suppliers, but contracts will only be activated if the Governing Council approves the currency. Cipollone mentioned that the digital euro’s rulebook is nearly finalized, but its implementation hinges on the approval of EU legislation.

In addressing concerns about stablecoins, Cipollone expressed apprehension about their potential impact on the European payment landscape. He warned that reliance on dollar-based stablecoins could lead to a shift in deposits to the United States, prompting increased vigilance from policymakers.

A decision on advancing the digital euro project is expected by November 2025, pending the enactment of relevant legislation. The issuance of the digital euro will ultimately depend on the regulatory framework in place. As the ECB continues to explore innovative payment solutions, the financial landscape in Europe may undergo significant transformations in the coming years.