Eurosystem Unveils 3-Part Payments Overhaul as 60% of EU Card Payments Run on Foreign Networks
Updated
Updated · European Central Bank · Jun 15
Eurosystem Unveils 3-Part Payments Overhaul as 60% of EU Card Payments Run on Foreign Networks
2 articles · Updated · European Central Bank · Jun 15
Summary
Pontes will begin settling tokenised transactions in central bank money later this year, the ECB said, making wholesale-market infrastructure the first concrete step in its payments overhaul.
More than 60 industry participants told the Eurosystem they would not issue digital assets at scale without central bank settlement, while Europe still relies on 32 central securities depositories versus 2 in the United States.
The strategy also pushes a digital euro to preserve public money online and reduce dependence on foreign payment rails; international schemes handle more than 60% of card payments and 13 of 21 euro-area countries lack a national card scheme.
Cross-border payments are the third pillar: TIPS is being linked to India's UPI, with Nexus in South-East Asia and Switzerland's SIC IP in advanced analysis, aiming for near-instant transfers on European-controlled infrastructure.
Lagarde framed the plan as both a sovereignty and integration project, arguing that common legal standards and market investment are needed to stop digital finance from recreating Europe's long-standing fragmentation.
Can the ECB's digital euro truly challenge US payment giants or is it a costly project destined for low adoption?
As Europe links with India's UPI, is a new financial bloc emerging to challenge the US dollar-dominated payment system?
Will the ECB’s tokenisation plan unify markets or create a new 'walled garden' that stifles true financial innovation?
Securing Europe’s Financial Future: The ECB’s Push for Digital Sovereignty in Payments and the Road to 2030
Overview
Europe is actively reshaping its payments landscape to enhance digital sovereignty and address vulnerabilities in its financial system. Driven by the European Central Bank’s recognition of risks from over-reliance on non-European payment networks and technologies, this transformation aims to secure financial autonomy and foster an innovative, integrated market ecosystem. The current dependence on international card schemes exposes Europe to external control and potential disruptions. By developing independent European payment solutions and infrastructures, Europe seeks to reduce these risks, strengthen its financial resilience, and ensure its payments system remains secure and competitive for the future.