Europe preps Digital Euro to enter circulation in 2029
- Reference: 1761888023
- News link: https://www.theregister.co.uk/2025/10/31/digital_euro_approved/
- Source link:
Europe initiated a “preparation phase” for a Digital Euro in November 2023. Yesterday, the ECB said that effort succeeded. ECB President Christine Lagarde said developing a Digital Euro will make the currency “fit for the future.”
Asked why the European Union needs a Digital Euro, and if it is a solution in search of a problem, Lagarde said “The key points for me are : Money is a public good; central banks are the custodian of that public good; and central money issued by central banks has to have its digital form, because we're moving into a different era where not everybody will want necessarily to have banknotes.”
Two thirds of digital payments in the Euro area are intermediated by non-European companies
A digital currency would also reduce the European Union’s reliance on payment service providers from outside the bloc.
Fabio Panetta, Governor of the Bank of Italy, pointed out that European banks represent only a third of digital payments activities within the Eurozone, and that “Two thirds of digital payments in the Euro area are intermediated by non-European companies, both for digital payments at the point of sale and digital payments online.”
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“The reason why this is so is that European banks did not agree until now on ways to provide their services to the entire Euro area,” he said. “They don't have what is called in technical terms a ‘rail’, the infrastructure to provide, to offer their digital payment services to all European citizens.”
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Panetta therefore thinks that a Digital Euro would mean European banks can compete across the continent.
“One of the main benefits for the banks in the Euro area is that once the digital euro infrastructure will be built, they will be able, by using this so-called open standard infrastructure, to use that rail and compete at a European level, thus generating additional business, additional revenues, and there will be many implications in terms of sovereignty for the euro area, in terms of control of the information that travels with your payments.”
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Lagarde said the ECB’s plan is to conduct a pilot of the Digital Euro by 2027 with a view to possible public use in 2029.
[5]Britcoin or Britcon? Bank of England grilled on Digital Pound privacy concerns
[6]Aussies crowdsource a business case for central bank digital currencies
[7]China warns of fake digital currency wallets fleecing netizens
[8]Programmable or 'purpose-bound' money is coming, probably as a feature in central bank digital currencies
The Digital Euro would be a “central bank digital currency” (CBDC), a concept that has been explored around the world but attracted critics who worry they could erode privacy or restrict freedoms.
Privacy advocates argue that every digital transaction creates records, so it could be possible to track a consumer’s use of a CBDC. Freedom-loving folk worry that CBDCs could be programmed so that some consumers could not use them on certain goods or services – think welfare recipients not being able to buy alcohol.
Security is another concern, because there’s no point in encouraging the public to adopt digital wallets if they’re easier to rob than physical wallets.
The ECB estimates it will cost €1.3 billion to get a Digital Euro into circulation, and that operating costs would then be around €320 million per year. ®
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[5] https://www.theregister.com/2023/09/18/digital_pound_treasury_committee/
[6] https://www.theregister.com/2022/08/09/australia_cbdc_experiments/
[7] https://www.theregister.com/2024/02/27/china_fake_ecny_app_warning/
[8] https://www.theregister.com/2023/12/21/programmable_money/
[9] https://whitepapers.theregister.com/
the bloc needs a Euro version of Visa and MasterCard
Because they are yet more oligopolies from Trumpistan, so having a European version is another aspect of Sovereignty.
Re: "the bloc needs a digital version of the Euro"
Have you ever looked at the charges imposed on traders by the credit card companies? These drive up the costs for consumers. In addition, being based in the US, they can be forced by the American government to provide data or even stop the service.
"I can pay everything I buy with my Visa. I haven't used cash since COVID.
What is this bullshit ? What new Big Brother scheme are they trying to push on us ?"
Paying with credit cards can be tracked, cash in anonymous. Not using cash is feeding big brother.
Why do you need a NEW digital (same) currency?
Why are you needing a new "digital euro" when transactions are already being done electronically? This is a sleight of hand by which you agree to and enter into a new scheme.
Re: Why do you need a NEW digital (same) currency?
Transactions already being done electronically in the EU are mostly likely subject to the whims of Trump. It could be worse: Musk has threatened to make X into a payment system / bank / black hole. The sooner there is an alternative to that available to everybody the better.
I use cash by default for all local transactions, I see zero benefit in feeding the monsters that are Visa and Mastercard. Most of the local small business's prefer this and this is doubly true in Portugal where many if not the majority of small business's don't/won't use electronic trading owing to the costs.
There are costs to cash as well. It is worth listening to the vendor to find out what they prefer and include that in your decision for when to keep data out of the hands of third parties.
One of the interesting takeaways from the recent Iberian power failure was that even shops that only took cash were mostly unable to operate because their PoS equipment wasn't working so we've already passed the tipping point when it comes to operational resilience. Banking costs of all kinds have traditionally been high in Portugal and there are a lot of informal barriers to external competition, but the EU is keen to see that change. Portugal is in a reasonably good position (e.g. with MultiBanco/SIBS) to offer low-cost digital transactions and if it doesn't it's going to be steamrollered.
I was in Portugal at the time of the aforementioned power failure and had no problems using cash while those with cards only had to wait until the power came back on or got cash. (Not easy as all the ATM's were down) .
eurozone fulfilment platform
I'm assuming that the EU wants to provide a replacement of the service currently provided by Mastercard and Visa for debit cards, maybe also for credit cards.
It would need to interface with them for use outside of the eurozone.
Re: eurozone fulfilment platform
Interesting that my German CE card works fine anywhere in Germany, but is being replaced (at the whim of the bank) by a mastercard which theoretically works anywhere. Though my wife's card has already been replaced, and doesn't work anywhere except Germany. Must talk to the bank about that.
So I end up with a three-tier solution: UK credit and debit cards in the UK (in Germany they have this ridiculous idea that you should pay a monthly fee for a credit card, even if unused!) and a Wise pre-loaded debit card for anywhere else. And a handful of cash just in case; that's country dependent.
I don't miss the days when a trip across Europe involved taking traveller's cheques or buying a basketful of francs, guilders, marks, krone...
Re: eurozone fulfilment platform
It's still a debit card even if it has Mastercard on it, it's just a different service provider, or maybe even simply rebranding.
As for paying for credit cards – you can either pay the fee or have higher interest payments.
Re: eurozone fulfilment platform
Or pay them off in full each month. Credit cards are some of the worst sources of credit (albeit not as bad as payday lenders or your local gangster). I find credit cards are convenient as they cost me nothing to use and provide a secure payment tool (as well as providing insurance against a supplier not delivering - as happened last year when a large builder went bust after I’d made an upfront payment for the materials (having made that payment on a credit card, the full amount was refunded by the bank).
As others have noted, some shops and businesses have dispensed with cash transactions - it takes away the need for holding and processing cash, something that is not risk or cost free. It makes cashing up at the end of the day a lot easier (something you won’t appreciate if you’ve never had to do it), not trips to the bank to pay in takings and get change (again only appreciated if you’ve had to do it - especially as local bank branches are impersonating hens’ teeth). Transaction fees are not negligible but are predictable and can readily be managed.
Re: eurozone fulfilment platform
Yes, the digital currency is essentially an attempt to enable this without a third-party provider.
What could possibly go wrong?
When it's spring again,
I'll bring again
Tulips from Amsterdam.
Hmm
Digital currency entirely in the hands of the children that brought you the Euro. And it doesnt really matter which government, I wouldnt trust any of them to have full control of the currency I have. The price of gold shows the value people place on government currencies at the current level of control. This is where people start finding appeal in other options such as bitcoin.
"[C]entral banks are the custodian of that public good.." Sounds like Huxley's Brave New World to me. Both Aldus and Julian.
We Alphas know what is best for you Betas - Epsilons now shutup and be good obedient subordinates.
"the bloc needs a digital version of the Euro"
Nonsense.
I can pay everything I buy with my Visa. I haven't used cash since COVID.
What is this bullshit ? What new Big Brother scheme are they trying to push on us ?
Don't know and don't give a damn. I don't need it, I don't want it, and I won't use it.
Go fuck yourselves.