Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards
The rules would let the ECB issue a digital wallet and start a 12-month pilot, while aiming to limit dependence on Visa and Mastercard.
- On Tuesday, the European Union moved closer to creating a digital euro when lawmakers held a long-awaited vote on the virtual currency to establish a sovereign, pan-European payment solution.
- Centrist EU lawmaker Gilles Boyer described payment systems as "instruments of power," noting nearly two-thirds of card payments in the euro area are handled by non-European companies Visa and Mastercard.
- ECB advisor Alessandro Giovannini said the digital euro would give consumers more choice, allowing them to "preserve their freedom to choose how to pay as daily life becomes more digital."
- European banks cited a European Banking Federation report estimating 18 billion euros to adapt the banking system, though the ECB insists investment costs will range between four and 5.8 billion euros.
- If negotiators approve the rules by year's end, the ECB hopes the digital euro will be available to citizens in 2029, with a pilot programme planned for mid-2027 to test technical readiness.
144 Articles
144 Articles
The common currency is becoming electronic – and quite soon. Do consumers have to say goodbye to notes and coins?
The digital euro, planned for 2029, could be used for payments in payment applications, online stores, and major brick-and-mortar stores.
It has circulated on social networks the idea that, in a few years' time, all entities will be forced to accept payments in digital euro. The information comes close to reality, but there are nuances to have...
The ultimate objective is for European citizens to have their own payment system capable of operating without external dependencies.
The crucial committee in the European Parliament has affirmed the intention of electronic money with clear majorities, which is also about strengthening Europe's strategic autonomy vis-à-vis unfriendly third countries.
The digital euro will be launched in 2029. Indeed, after many years of negotiations, the European Parliament's Committee on Economic Affairs approved the project, which has become a necessity for the ECB.
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