ECB Urges Swift Digital Euro Progress to Maintain Global Position

Europe faces a growing urgency to develop the digital euro. As other regions push forward with digital currencies, the European Central Bank risks falling behind. 

The digital euro could offer a unified payment solution across the eurozone, but delays threaten to hinder progress. If Europe doesn’t act soon, the continent might lose its financial edge.

Urgency to Act

Evelien Witlox, project manager at the ECB, highlights the pressing need for speed. In a recent interview, she stressed that Europe’s payment systems are too fragmented. Many countries still rely on global players like Visa and Mastercard. 

With cash use declining and cryptocurrencies on the rise, the ECB sees the digital euro as essential to regain control. Witlox pointed out that 13 out of 20 eurozone nations still lack national card schemes. 

This creates dependence on foreign companies. The digital euro could provide a centralized, secure alternative. Europe must act quickly to avoid losing ground.

Legal and Accessibility Challenges

The ECB first introduced the digital euro concept in 2021. However, the European Commission’s legal framework proposal is still unfinished after nearly 17 months. Witlox remains hopeful but emphasized the need to maintain progress in the legislative process.

Plans to ensure accessibility for all include offline options, physical cards, and institutions that can help users load accounts. In some countries, like Italy, post offices might assist people in accessing the digital euro.

Witlox also stressed Europe’s position at the forefront of CBDC development. “We cannot miss the chance to shape what a retail CBDC should be,” she said. Europe must act now, or risk losing its opportunity to lead the digital currency revolution.