The European Central Bank is working on a digital euro to modernize payments and reduce dependence on foreign companies, with a launch estimated in 2029.

The European Central Bank (ECB) started working on a digital euro back in 2020, aiming to modernize the payment system and maintain the relevance of the currency in a digital world. Progress has been slow due to a lack of political urgency and resistance from the banking sector. European Commissioner Valdis Dombrovskis highlighted that nearly two-thirds of card transactions in the EU are managed by American companies like Visa and Mastercard, making Europe vulnerable. A digital euro could address this issue by providing a solution for online purchases and in-store payments. At the end of last year, EU governments agreed on the need for a digital euro accessible at any time, and the ECB estimates that it could be operational by 2029, after completing negotiations with the European Parliament.