ECB-Bank Rift Delays Digital Euro as Visa and Mastercard Keep 2/3 of EU Card Payments
Updated
Updated · Reuters · May 22
ECB-Bank Rift Delays Digital Euro as Visa and Mastercard Keep 2/3 of EU Card Payments
3 articles · Updated · Reuters · May 22
Three years of political wrangling have stalled digital euro legislation, with EU lawmaker Fernando Navarrete saying negotiations are still unresolved though a final vote could come before summer ends.
Banks are resisting because the ECB plans free payment infrastructure and capped merchant fees, a design Reuters calculates could strip 8 billion to 9 billion euros a year from private payments revenues.
The ECB argues a digital euro would create a single euro-zone payments backbone and reduce dependence on U.S. groups that process nearly two thirds of the bloc's card payments.
Private players are pursuing parallel routes instead: 25 more banks joined a euro-pegged crypto consortium on Wednesday, while Bancomat, Bizum and Wero are linking or expanding national payment networks.
That split leaves Europe chasing payment sovereignty on multiple tracks, even as technology shifts could outpace the ECB's 2029 target and fragmented systems raise cyber and operational risks.
With private wallets gaining ground, is the ECB's digital euro arriving too late to win the battle for Europe's payments?
In its quest for payment sovereignty, is Europe replacing US dominance with a fragmented system of its own making?
From Dependence to Dominance: How Europe’s Digital Euro and Wero Aim to Transform a $50 Trillion Payments Market
Overview
Europe's push for its own payment systems is driven by the urgent need to secure financial independence and strengthen resilience in a changing world. Currently, Europe relies heavily on US-based networks like Visa and Mastercard, which control a large share of the market and process much of Europe's sensitive financial data. This dependence creates strategic vulnerabilities and has sparked a strong movement for payments sovereignty. By aiming to control its financial infrastructure and data, Europe seeks to reduce risks, protect its economy, and ensure its future stability in the global financial landscape.