Why is Europe rushing with the digital euro? The Wero project and control over payments

Six out of every ten transactions in Europe go through American infrastructure such as Visa, Mastercard, and PayPal. Brussels is seeking to change this through its most ambitious project to date—the digital euro. In an era of trade wars, sanctions, and geopolitical fragmentation, the EU's dependence on foreign payment systems is becoming strategically risky, Euronews writes in its analysis.

Europe is betting on a two-pronged strategy:

Public initiative: The digital euro – a central bank digital currency (CBDC) issued by the European Central Bank (ECB).

Private initiative: Account-to-account payment systems (such as Wero) backed by major European banks.

The role of the ECB and the implementation schedule

The ECB plans to issue a digital payment instrument that is a direct liability of the central bank (rather than a commercial bank).

It will not have the volatility of Bitcoin, will not depend on US card operators and, unlike so-called stablecoins, will be legal tender. In 2026, the Eurosystem will invite European payment service providers to express their interest in participating in a pilot project planned for the second half of 2026.

In 2026, the Eurosystem will invite European payment service providers to express their interest in participating in a pilot project planned for the second half of 2027. This move follows the ECB Governing Council's decision to continue work on the project, although the final decision on issuance will depend on the adoption of relevant legislation in the EU.

The planned 12-month pilot project will test technical readiness through real transactions, which, however, will not yet have official legal tender status.

Delay in the legislative process

Although the European Commission submitted the proposal for a regulation back in June 2023, almost three years later, the European Parliament still does not have a unified negotiating position. The Committee on Economic and Monetary Affairs (ECON) has repeatedly blocked key texts, including requirements for full functionality in online and offline modes.

The European People's Party (EPP), under pressure from the banking lobby, is pushing for a more limited model focused primarily on offline payments. The banks' concerns relate to so-called disintermediation (bypassing banks as intermediaries).

If work in the ECON committee remains at a standstill, MEPs may vote on a mandate for negotiations directly in the plenary chamber in May 2026.

The stakes are high: without a mandate from Parliament, the trilogue negotiations cannot begin. And without them, there will be no law, which ties the ECB's hands when it comes to issuing the currency.

The risks of misdiagnosis
Judith Arnal, senior fellow at CEPS and Real Instituto Elcano, expresses concern about the way Brussels defines the problem.

"I am concerned about the attitude in Parliament—they are lumping Visa, Mastercard, Apple Pay, Google Pay, and Microsoft together," she explains.

According to her, the retail payments market has several levels:

Visa and Mastercard dominate at the "card schemes" and infrastructure level.

However, when it comes to payment processing and acquiring, Europe relies almost entirely on EU-based companies, meaning there is no dependency.

Apple Pay and Google Pay are simply "digital wallets" – they are convenient but do not threaten sovereignty, rather they create competition issues.

Arnal warns that "anti-American corporate rhetoric" is dangerous. Geopolitical rivalry is one thing, but the risk of Europe being isolated from global card networks is quite another.

The private sector is already taking action: the Wero project

The European wallet Wero, supported by the European Payment Initiative (EPI), is already operating in France, Germany, and Belgium. Ludovic Francesconi, strategic director of EPI, points out that the goal is to restore balance.

A strong European solution strengthens competition and gives banks and merchants a real choice. “

He is cautious about the digital euro: “Cooperation is key, but the role of the digital euro beyond its monetary function is still unclear. Europe will be strongest if public and private projects complement each other rather than duplicate each other.”

According to Arnal, any European alternative must overcome four barriers:

Cost: Merchants must recognize it as cheaper than cards.

Convenience: Consumers demand "one-click" payments.

Security: Fast payments increase the risk of fraud (the transaction is irreversible).

Protection: Mechanisms are needed to resolve disputes over problematic purchases.

Despite the difficulties, the political pressure surrounding the digital euro has had an unexpected positive effect: it has forced the banking sector to act much more quickly on interoperability and innovation.

The digital euro is not a magic solution. It will not work internationally right away and poses a risk to the stability of bank deposits. The most effective path seems to be a hybrid ecosystem: Wero for everyday European payments, Visa and Mastercard for global transactions, and the digital euro as a stable public foundation.