ECB Board Member Calls the Digital Euro a Sovereignty Tool While Latvia Targets Tokenization Rules for 2027

Europe is advancing on two fronts: central bank digital money and tokenization. ECB Executive Board member Piero Cipollone said in an interview with Milano Finance on October 25 that the digital euro could give the EU sovereignty over payment infrastructure that now depends on non-European third parties. Europe, he said, “cannot rely only on third parties” for essential services, and sovereignty means “having the power to choose.” In an April lecture he said two-thirds of euro-area card transactions are governed by non-European companies.

The timeline is clear. A 2027 pilot will use real transactions with ECB and national central bank staff, with 36 market operators involved. A full rollout could come as early as 2029, but the ECB can only decide on issuance after EU legislative negotiations conclude. Cipollone hopes the regulation is adopted by the end of 2026.

In Latvia, Economics Minister Viktors Valainis told CoinDesk at a Riga fintech conference that rules for tokenizing real-world assets could take effect in the first half of 2027 “if everything goes smoothly.” Commercial property is a possible starting point, and government bonds are on the priority list. A legal assessment due October 1 is still ongoing, and his party won no seats in this month’s election, though he expects the work to stay on the agenda. About 40 companies are seeking MiCA licenses.

Both tracks depend on legislation and politics, so timelines can still change.

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Sources:

• Cointelegraph: ECB’s Cipollone says digital euro a matter of sovereignty
• CoinDesk: Latvia targets tokenization rules in 2027 with commercial property in focus