The European Central Bank now admits the digital euro project targets American payment giants. Visa and Mastercard dominate 61 percent of euro card transactions. This marks a shift from its earlier image as just a modern cash alternative.
For years the European Central Bank presented the digital euro only as a modern option instead of cash notes and coins. It was meant to offer a practical way for people to make payments in a digital age. The focus stayed on user benefits like speed and security without mentioning other aims.
Now leaders have openly said the project aims to fight back against American payment firms. Visa and Mastercard handle sixty one percent of all card payments in the euro area. This dominance gives these companies great power over transactions and raises concerns about data and control.
The change in message shows new priorities for Europe. Building a digital euro could help keep money matters local and less dependent on outside players. It may also support the euro currency in global use. This effort comes at a time when digital payments grow fast around the world and regions seek more say in their economies.
Original Author: Cláudia Ascensão Nunes | Source: FEE
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