The European Union believes the digital euro is the solution to reducing dependence on US payment systems such as Visa and Mastercard, as well as Apple Pay and Google Pay, while the bloc seeks to favor European firms over others.
Brussels hopes it could provide an alternative local option for any payments in stores or online, as people could pay easily, just like in other systems, using a card, an app or through their banking app.
The European Union will be one step closer to creating a digital euro on Tuesday when EU lawmakers hold a long-awaited vote on the virtual currency.
The European Central Bank first proposed a digital euro in 2020 because Europe did not have its own system before the EU executive made its formal proposal.
The digital euro cannot be created without the approval of the rules that are the basis of the project by the capitals of the EU and the European Parliament, reports Fena.
Brussels hopes it could provide an alternative local option for any payments in stores or online, as people could pay easily, just like in other systems, using a card, an app or through their banking app.
The European Union will be one step closer to creating a digital euro on Tuesday when EU lawmakers hold a long-awaited vote on the virtual currency.
The digital euro should not be confused with cash in the bank. When you use your bank card, Apple or Google Pay, you pay with physical money that is in your account.
Instead, your digital euros would be in a separate virtual wallet.
The ECB hopes the digital euro will be available to citizens in 2029 if EU negotiators approve the rules by the end of the year.
If that deadline is met, the ECB is ready to launch a pilot program in mid-2027 to test how it will work in practice.
Some say it is too long, but “banks and traders need time to prepare to be able to roll it out smoothly and on a large scale,” Alessandro Giovannini, adviser to the ECB’s digital euro director, told AFP.
