O European Parliament The EU approved a project to create the digital euro, an electronic version of the common European currency, with a planned launch by 2029. The initiative was approved by the bloc's Committee on Economic and Monetary Affairs and foresees both online and offline usage options.
The central objective is to reduce Europe's dependence on American payment companies such as Visa, Mastercard, and PayPal. Fernando Navarrete Rojas, the rapporteur for the project, stated that the digital currency will allow "citizens of the bloc to have the freedom to choose how to pay."
How will it work
The digital euro will function as an instant payment system, with a structure comparable to Brazil's Pix: direct transactions, without private intermediaries and with lower fees for merchants and consumers.
The project has been under discussion for five years, but has recently gained momentum due to concerns from member countries about their dependence on American platforms. Statements by the President of the United States regarding large payment companies have also influenced the acceleration of negotiations.
The digital euro will not replace paper money, but will function as a sovereign digital alternative within the eurozone, including countries such as Italy, France and Germany. (With information from DN)
