The European Union is moving closer to introducing a digital euro, a project aimed at reducing reliance on US-based payment networks such as Visa, Mastercard, Apple Pay and Google Pay, according to AFP.
EU lawmakers are set to vote on June 23 on the proposal, marking a key step in the long-running initiative to create a central bank-backed digital currency for the eurozone.
The concept was first introduced by the European Central Bank (ECB) in 2020, with the European Commission later turning it into a formal legislative proposal. However, implementation will require approval from both EU member states and the European Parliament.
Explaining the idea, the ECB says the digital euro would function as sovereign digital money, separate from bank account balances. “The digital euro will have the same value as cash in circulation,” the central bank has said.
Under the proposed system, users would be able to store digital euros in a dedicated electronic wallet provided by banks or public institutions. Payments could be made in stores, online, or between individuals using cards, mobile apps or phones, with an option for offline transactions designed to resemble cash use. The ECB also says the system would include strong data protection safeguards.
