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EU lawmakers vote on digital euro to curb US payment dominance
🇸🇦 Saudi Arabia /Elections & Politics

EU lawmakers vote on digital euro to curb US payment dominance

From Asharq Al-Awsat · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The EU is moving closer to creating a digital euro, with lawmakers set to vote on the virtual currency.
  • The digital euro aims to reduce the bloc's reliance on US payment systems like Visa and Mastercard, offering a European alternative.
  • If approved, the digital euro could be available to citizens by 2029, following a pilot program starting in mid-2027.

The European Union is taking a significant step toward launching its own digital currency, the digital euro, aiming to break free from the dominance of US payment giants. EU lawmakers are scheduled to vote on the virtual currency, a move that could reshape digital transactions within the bloc.

banks and merchants need time to prepare so they can roll it out smoothly and at scale

— Alessandro Giovanniniadvisor to the digital euro director at the ECB, explaining the timeline for the digital euro's rollout.

The digital euro is envisioned as a European alternative to systems like Visa, Mastercard, Apple Pay, and Google Pay. Brussels hopes it will provide a local option for both online and in-person payments, accessible via cards, apps, or banking interfaces. The European Central Bank first proposed the digital euro in 2020, recognizing Europe's lack of a proprietary payment system.

If the rules are approved by EU capitals and the European Parliament by the end of the year, the digital euro could be available to citizens by 2029. The ECB plans to launch a pilot program in mid-2027 to test its functionality. "Banks and merchants need time to prepare so they can roll it out smoothly and at scale," noted Alessandro Giovannini, an advisor to the digital euro director at the ECB.

It wouldn't replace anything. Cash would still be available, and people could use existing private payment methods

— Alessandro GiovanniniECB's Giovannini, emphasizing that the digital euro would coexist with current payment options.

Officials emphasize that the digital euro would not replace existing cash or private payment methods, but rather offer consumers more choice and "preserve their freedom to pay as daily life becomes more digital." The system is designed to protect user privacy, with no transaction identification and an offline mode offering the same confidentiality as cash.

preserve their freedom to choose how to pay as daily life becomes more digital

— Alessandro GiovanniniECB's Giovannini, describing one of the benefits of the digital euro for consumers.

"Payment systems are not neutral but instruments of power," stated centrist EU lawmaker Gilles Boyer. He highlighted the EU's "dependence on the US" as a wake-up call, citing Washington's sanctions against International Criminal Court judges as an example of the leverage US firms hold. Tuesday's vote is seen as a crucial step toward making "a sovereign, pan-European payment solution a reality."

Payment systems are not neutral but instruments of power

— Gilles Boyercentrist EU lawmaker, explaining the strategic importance of payment systems.
DistantNews Editorial

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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