EU moves ahead with digital euro to curb dependence on U.S. card networks

Europe’s Parliament backed the ECB’s plan for a digital euro, a central-bank–guaranteed digital wallet intended to reduce reliance on U.S. card networks. Final approval is expected this year, with a 12-month pilot starting in 2027 and a full rollout by 2029. Draft rules would cap holdings, ban interest, and place a four-to-six billion euro cost footprint on four years, amid concerns about deposit flight and how banks would be compensated, as private-sector alternatives loom. Outside the euro area, countries are testing digital currencies, while the U.S. stance under Trump-era policy could shape the global payments landscape.