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EU Pushes for Digital Euro to Reduce Reliance on US Payment Firms

By  |  January 28, 2026
digital euro

The European Union should move faster to launch a digital euro in order to lessen its reliance on major U.S. payment companies, Economic Commissioner Valdis Dombrovskis said on Wednesday, according to Reuters. The initiative is seen as increasingly urgent as global political and economic tensions put pressure on Europe’s financial independence.

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    The European Central Bank has been developing plans for a digital version of the euro since 2020, with the aim of modernizing the region’s payments system and keeping central bank money relevant as more transactions move online, per Reuters. Despite these efforts, progress has been slow, in part because of limited political momentum and concerns within parts of the banking industry.

    However, recent geopolitical developments have helped push the issue higher up the political agenda. According to Reuters, the readiness of U.S. President Donald Trump’s administration to apply economic pressure on Europe, including in disputes such as Greenland, has sharpened awareness in the EU about its vulnerabilities.

    Speaking at the European Banking Summit, Dombrovskis warned that Europe’s payments system is already heavily dependent on non-European players. “Today, our payments landscape is highly dominated by non-European providers. This makes us dependent on foreign-owned companies in an increasingly polarized and fragmented world,” he said, according to Reuters.

    Related: The Trends That Will Define European Antitrust in 2026

    Data underline those concerns. Almost two-thirds of all card transactions in the European Union are processed by U.S.-based companies Visa and Mastercard, Reuters reported. Dombrovskis said that such dominance leaves the bloc exposed to external influence and potential disruptions.

    He also cautioned that giving up too much control over key financial technology could undermine Europe’s ability to act independently. “Ceding such a degree of technological control over the EU’s economy to others could impede our ability to act autonomously. It poses real threats to our resilience and economic security,” he said, per Reuters.

    Supporters of the digital euro argue that it could provide a secure, EU-controlled alternative for everyday payments, reducing the bloc’s reliance on foreign firms and strengthening its financial sovereignty. As debates continue among policymakers and banks, the project is increasingly being framed not just as a technological upgrade, but as a strategic necessity for Europe’s economic future, according to Reuters.

    Source: Reuters