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EU Moves to Accelerate Digital Euro as Officials Warn Over Reliance on U.S. Payment Firms

The ECB says the currency could launch by 2029 pending political agreement.

European Commissioner for Economy Valdis Dombrovskis holds a press conference to present the loan to support Ukraine's financial needs for 2026 and 2027 in Brussels, Belgium January 14, 2026. REUTERS/Omar Havana

Overview

  • EU Economic Commissioner Valdis Dombrovskis urged a faster rollout, citing the bloc’s dependence on foreign providers and recent geopolitical pressure.
  • Nearly two thirds of EU card transactions are processed by Visa and Mastercard, which officials say exposes Europe to strategic risk.
  • EU governments agreed in December that a digital euro should work at any time and also function offline.
  • ECB board member Piero Cipollone defended the project as public money in digital form and questioned limiting it to offline use given e‑commerce needs.
  • Cash use has fallen to about 24% of transactions since 2019 as e‑commerce grows, while progress remains slowed by limited political urgency, banking‑sector resistance, and ongoing talks with the European Parliament.