Piero Cipollone highlights legal tender status and social agreement as critical to central bank digital currency adoption.
European Central Bank Executive Board member Piero Cipollone emphasized trust as the cornerstone of the digital euro during a speech in Rome. He noted that money’s value stems from societal agreement and legal backing, ensuring acceptance and stability in payments.
Cipollone referenced Aristotle’s concept of “nomisma,” linking money’s legitimacy to law and collective confidence. He underscored that central bank-issued currency anchors the monetary system, enabling commercial banks to operate and issue deposits or loans.
The speech framed the digital euro as an evolution of this trust-based framework, aligning with the ECB’s broader monetary policy objectives. No immediate market reaction was reported.