Brussels, Belgium. Senior European and Cypriot central bank officials highlighted the growing importance of the digital euro in strengthening the European Union’s strategic autonomy during an event at the House of the Euro. The discussion took place on April 22.
Officials underline sovereignty and resilience goals
The event featured Central Bank of Cyprus payments supervision director Stelios Georgakis alongside Deutsche Bundesbank president Joachim Nagel, who delivered the keynote address.
“The digital euro has moved far beyond a technical concept, it is now a political project for more sovereignty,” Nagel said. He stressed the need to reinforce Europe’s payment infrastructure so that it becomes more independent and resilient in an increasingly digital environment.
“With this digital complement to cash, we will renew the role of central bank money in an increasingly digital world,” he said, adding that the digital euro is intended to complement rather than replace physical cash.
Concerns over non-European payment infrastructure
Nagel said around two-thirds of card payments in Europe are currently processed through non-European infrastructures, creating a significant dependency. He said the digital euro could help reduce this reliance and enhance European payment sovereignty, while also addressing fragmentation and supporting innovation.
“I strongly believe that the legislative process can be concluded by the end of the year, paving the way for a digital euro that embodies Europe’s vision of sovereignty,” Nagel said, adding that the first issuance could be possible from 2029 onwards.
ECB payments strategy presented
During the panel discussion, Georgakis presented the European Central Bank’s comprehensive payments strategy, covering both retail and wholesale systems. He said the strategy includes instant payments and the digital euro, as well as the development of wholesale systems integrating digital assets and distributed ledger technology.
What role do you think the digital euro should play alongside cash in everyday payments?