EU finance ministers have agreed on a roadmap for launching a digital euro, aiming to reduce reliance on U.S. payment systems, such as Visa and Mastercard. The ECB-led project still requires legislative approval, with concerns over privacy and banking impact. Ministers will now have input on key issues, including issuance and holding limits. Reuters reports that if approved, the digital euro could launch within three years as a step toward financial sovereignty in Europe. They write:
European Union finance ministers on Friday agreed on a roadmap for launching a digital euro currency that aims to become an alternative to the now dominant U.S.-based Visa and Mastercard systems.
Discussions on a digital euro, essentially an electronic wallet backed by the European Central Bank,ย heated up this year because the EU is now keen to reduce its dependence on other countries in key areas like energy, finance and defence. […]
Some EU countries have their own national digital payments systems, but none that would be accepted across the 27-nation bloc.
“The digital Europe is not just a means of payment, it is also a political statement concerning the sovereignty of Europe and its capacity to handle payment, including on a cross-border basis, with a European infrastructure and solution,” Lagarde said at the press conference.
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