A digital euro as a tool for preserving the EU's financial independence
Date: 2025-10-01 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
From 2019 to 2024, the share of cash transactions in eurozone countries declined significantly, while electronic payment methods became widespread. According to Piero Cipollone, a representative of the European Central Bank, this process has led to increased dependence of Europeans on international payment systems located outside the EU. This situation poses risks for the region: it could undermine economic independence, increase costs, and weaken competitiveness.
The ECB believes that the introduction of a digital euro will allow it to regain control over the payment infrastructure and provide Europe with its own universal payment instrument. A central bank digital currency (CBDC) will allow citizens to make payments anywhere in the world, even if cash use continues to decline.
The regulator has already outlined preliminary timelines for the project's launch: the full issuance of the digital euro is possible by 2029. At the same time, large-scale testing is planned for 2025, involving private companies. The trials will cover various scenarios, from automated payments, such as public transportation fares, to refund functions.
One of the key features of the digital euro will be the ability to conduct offline transactions. Users will be able to make payments without an internet or mobile network connection. A dedicated app will be created for this purpose. The ECB will also set limits on the amount of digital currency that can be stored and will not charge interest on balances to prevent a massive withdrawal of funds from commercial banks.
Privacy remains a priority for the regulator. Cipollone previously emphasized that the digital euro will provide a higher level of privacy than private stablecoins and guarantee the protection of users' personal data.
Thus, the ECB's initiative is not aimed at replacing cash, but at strengthening the financial sovereignty of the European Union and adapting to changing global economic conditions. The digital euro should complement existing forms of payment, preserving citizens' traditional choice between cash and electronic payments.
