ECB specifies the legal framework for digital euro which is tech-agnostic. The current plan is that it would be possible to use plastic card, web browser with username+password, smart watch, retail terminal or any future technology with digital euro.
I guess the username+password part is new, but I’m not sure it’s enough of a reason to invent a whole new payment system. Normal CC networks do all the rest already.
I’m not sure it’s enough of a reason to invent a whole new payment system.
The Euronews report lists the reasons:
Visa and Mastercard, both American, account for 61% of card payments in the eurozone and nearly all cross-border transactions, according to ECB data.
US President Donald Trump’s return to the White House and his hostile approach to both foreign policy and trade accelerated the debate, and at the European Council in mid-March, EU leaders set a deadline to approve the legislation before the end of 2026.
The ECB’s push to launch one is partly a response to the rise of privately issued stablecoins, which have steadily eaten into the payments landscape.
The message from Brussels and institutions across the continent is clear: Europe wants to control its own money.
I did read all that. I’m all for creating a public way around the corporate payment networks.
What I mean is, one could just create a public charge card network that works the same way, with the same infrastructure that Visa, MasterCard, Discover, American Express, Diner’s Club, etc all use. All that would change are the fee structures everyone pays. I don’t see the need to reinvent the wheel here.
What I mean is, one could just create a public charge card network that works the same way, with the same infrastructure that Visa, MasterCard, Discover, American Express, Diner’s Club, etc all use.
Visa and co. mostly don’t work on modern mobile phones. Digital euro strives to replace apple pay and google pay as well. Visa and co. also have lot of redundant functions like payment by credit, solvency assessment, cash back rewards, travel points and purchase protections. Digital euro doesn’t have that and as a consequence, it doesn’t need to intrude into customer’s privacy as much as credit card companies do. Nor does it incur the vast costs associated with credit recuperation on banks.
Visa and co. mostly don’t work on modern mobile phones.
Never had a problem. Not sure what that means
The networks don’t do credit, or cash back rewards, points and the like. That’s not Visa and friends. Those are offered by the banks who back the accounts. Debit cards don’t have those options and work exactly the same as far as the charge network is concerned.
The public network doesn’t have to worry about any of that. People could use it with credit, debit, or charge cards whatever they wanted.
Credit card network is not a thing without traditional banks taking part, these kind of for-profit entities generally don’t play well with public good/open source things. Right now it looks both are being worked on (a for profit thing called Wero and a public good thing called the digital euro) and i suppose that it isn’t a bad thing we get both instead of either.
Why create a new kind of “digital euro” instead of a public credit card network? Why create entirely new tech?
ECB specifies the legal framework for digital euro which is tech-agnostic. The current plan is that it would be possible to use plastic card, web browser with username+password, smart watch, retail terminal or any future technology with digital euro.
I guess the username+password part is new, but I’m not sure it’s enough of a reason to invent a whole new payment system. Normal CC networks do all the rest already.
The Euronews report lists the reasons:
I did read all that. I’m all for creating a public way around the corporate payment networks.
What I mean is, one could just create a public charge card network that works the same way, with the same infrastructure that Visa, MasterCard, Discover, American Express, Diner’s Club, etc all use. All that would change are the fee structures everyone pays. I don’t see the need to reinvent the wheel here.
The “transactions will be untraceable” thing seems to be new?
Oh! Yah, that’s plenty of reason. Though I have doubts.
Visa and co. mostly don’t work on modern mobile phones. Digital euro strives to replace apple pay and google pay as well. Visa and co. also have lot of redundant functions like payment by credit, solvency assessment, cash back rewards, travel points and purchase protections. Digital euro doesn’t have that and as a consequence, it doesn’t need to intrude into customer’s privacy as much as credit card companies do. Nor does it incur the vast costs associated with credit recuperation on banks.
Never had a problem. Not sure what that means
The networks don’t do credit, or cash back rewards, points and the like. That’s not Visa and friends. Those are offered by the banks who back the accounts. Debit cards don’t have those options and work exactly the same as far as the charge network is concerned.
The public network doesn’t have to worry about any of that. People could use it with credit, debit, or charge cards whatever they wanted.
Credit card network is not a thing without traditional banks taking part, these kind of for-profit entities generally don’t play well with public good/open source things. Right now it looks both are being worked on (a for profit thing called Wero and a public good thing called the digital euro) and i suppose that it isn’t a bad thing we get both instead of either.
Nobody likes the charge card networks. They charge fees to nearly everyone. Banks would jump on a fee free alternative.