The Financial Times reported that the European Central Bank (ECB) is intensifying its push to reduce Europe’s reliance on US payment giants like Visa and Mastercard by laying the groundwork for the launch of a digital euro.
The ECB has approved a new set of technology standards designed to ensure that payment cards and terminals across the eurozone can work seamlessly with the future digital currency. The relocate is seen as a major step toward introducing the digital euro by 2029, highlighted the FT.
Card payments in the EU into the hands of U.S. companies
The central bank wants the digital euro to serve as a digital form of cash, holding legal tfinisher status alongside coins and banknotes. It is also aimed at reducing Europe’s heavy depfinishence on international payment systems, most of which are dominated by US firms.
At present, around two-thirds of all card payments in the euro-zone are handled by international schemes, with many European countries lacking a strong domestic alternative.
Under the new framework, private payment providers would be required to update card readers and payment infrastructure to support the ECB-backed standards once the digital euro becomes legal tfinisher across the 21 eurozone countries.
Unlike current payment standards set by global schemes, which often involve fees for usage, the ECB declares the European alternative will be free for utilizers.
ECB Executive Board member Piero Cipollone stated to the Financial Times that the goal is to create “a European free alternative” to existing proprietary systems and ensure digital cash can work smoothly with both public and private sector payment solutions.
Current global standards are largely managed by EMVCo, a California-based consortium overseen by six major non-European payment groups including American Express, Discover, JCB, UnionPay, Mastercard and Visa.
Final agreement until early 2027?
The ECB has instead chosen standards developed by the European Card Payment Cooperation, nexo standards and the Berlin Group—systems already in utilize in parts of Europe. Germany’s Girocard and France’s Carte Bancaire are among the major national schemes already adopting these protocols.
However, the digital euro project still faces political hurdles. While the European Commission and EU governments support the initiative, approval from the European Parliament is still required.
Some banks and payment providers remain cautious, arguing that the digital euro may bring limited added value while potentially weakening private European initiatives testing to challenge Visa and Mastercard’s dominance.
If lawbuildrs approve the legislation this summer, neobtainediations with EU member states would follow, with a final agreement expected by late 2026 or early 2027.
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