The European Central Bank (ECB) is calling for faster action on the digital euro project amid concerns that ongoing legislative delays could hinder Europe’s ability to compete in the rapidly evolving global digital currency race.
Evelien Witlox, the ECB’s project manager for the digital euro, emphasized the need for swift progress in an interview with Euronews, warning that Europe risks falling behind as global competitors, including the U.K. and China, advance their own central bank digital currencies (CBDCs).
Europe’s Fragmented Payment Market
Witlox highlighted that Europe currently lacks a unified digital payment solution. Thirteen of the 20 eurozone countries still do not have a national card system, relying on international payment giants like Visa and Mastercard. This fragmentation, she noted, leaves the European market vulnerable, with non-European companies currently dominating the digital payments landscape.
To address this gap, the ECB launched its CBDC exploration project in October 2021, aiming to develop a digital euro. However, the initiative has been delayed due to the slow pace of legislative progress within the European Union. The legal framework for the digital euro, which requires approval from both the European Parliament and the Council, has yet to be finalized—nearly 17 months after the European Commission first proposed it.
Urgency for Action
Witlox expressed concern that further delays could undermine Europe’s competitive edge. “We need to ensure that we can introduce the digital euro when it’s truly needed,” she said, underlining the importance of keeping up momentum in the legislative process. While there is no set timeline for the digital euro’s launch, Witlox remains optimistic, noting that Europe is still at the “forefront” of CBDC development.
As the digital euro project continues to face hurdles, the ECB is pressing for quicker legislative action to ensure Europe does not fall behind in the global race to develop digital currencies.
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