Two-thirds of card transactions in the eurozone are currently dominated by non-European companies. That figure was disclosed by European Central Bank (ECB) Executive Board Member Piero Cipollone in an interview published Saturday by Italy’s central bank, Banca d’Italia, via Milano Finance. According to Cipollone, the heavy share of foreign card payments leaves the European Union reliant on foreign infrastructure.
This reliance underpins the ECB’s plans to issue a digital euro. The central bank digital currency is designed to grant the European Union sovereignty over its payment infrastructure while cutting dependence on non-European third parties.
The move is not meant to push out foreign companies, but rather to introduce an independent option that the region has lacked.
Not Shutting Out Third Parties, but Having the Power to Choose
Cipollone stressed that payment sovereignty is not aimed at shutting out non-European businesses. The ECB’s primary focus is building independent capabilities so the region has bargaining power and direct options, or what he described as “the power to choose.”
Addressing the payment system’s vulnerabilities, Cipollone drew comparisons to the energy and defense sectors. “Europe has learned that for essential services, we cannot rely solely on third parties,” Cipollone said. For him, retail payments are an essential public service that requires similar autonomy.
Testing Roadmap Toward 2029
Development of the digital euro is following a phased timeline. The ECB plans a live transaction test pilot in 2027 involving internal ECB staff and national central bank employees across the euro area to test system reliability.
An official rollout is targeted for 2029 at the earliest, provided European Union-level legislation has been enacted. The ECB Governing Council will only have the authority to decide on issuing the digital currency once legislative negotiations in Brussels are finalized.
The ECB expects regulatory discussions with Brussels policymakers to conclude by late 2026. That legal approval is an absolute prerequisite before the Governing Council can make an issuance decision.
Partnering with 36 Market Operators
On a technical level, preparations already involve financial industry participants. A total of 36 market operators have collaborated with the ECB, including seven Italian entities, to align existing infrastructure with the new system.
The ECB has also invited e-commerce and mobile commerce (m-commerce) operators to join the preparations. Involving the commercial sector is intended to ensure the digital euro is ready for integration into mobile apps and everyday online shopping transactions.
For eurozone consumers, the project represents a decisive test of whether foreign corporations’ two-thirds dominance in card transactions can be countered with the continent’s own independent payment rails.
Reported via Cointelegraph.
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