The European Central Bank (ECB) plans to expand the use of the digital euro and process over 50 billion transactions per year, the European publication Politico reports, citing its sources.
The digital currency could change the retail payments market and put pressure on the key sources of revenue of current payment systems. At maximum load on the system, the digital euro could absorb about a third of all transactions in the eurozone.
Currently, the majority of payment fees go to Visa and Mastercard, which are located outside the EU. One of the goals of expanding the use of the digital euro is to stop the outflow of money outside the community and reduce Europe's dependence on the infrastructure of international financial companies.
If these plans are implemented, European consumers will be able to buy goods at lower prices, and the community itself will strengthen its economic autonomy. On the other hand, these measures will hit the banking sector, as people will keep money in electronic wallets, rather than in bank deposits. An unnamed ECB official specifically emphasized that the ECB Governing Council must approve the allocation of about EUR 1.5 billion for the implementation of the project.
The idea of creating a digital euro was first voiced by the ECB in 2020. According to recent statements by representatives of the regulator, the ECB expects that the necessary legislative framework for the launch of a digital payment instrument at the EU level will be prepared in the autumn of 2025.