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Europe Takes Major Step Toward a Digital Euro Aiming to Bypass US Payment Giants

Europe Takes Major Step Toward a Digital Euro Aiming to Bypass US Payment Giants
Photo by Tabrez Syed / Unsplash

The European Parliament's Committee on Economic and Monetary Affairs has officially approved the legal framework for the digital euro by a vote of 43 to 14. Designed to strengthen the continent's financial sovereignty, the central bank digital currency aims to reduce reliance on dominant United States payment networks like Visa and Mastercard. The digital euro will support both online and offline transactions, with offline payments functioning similarly to cash by storing data directly on local devices like smartphones. To secure public trust, the infrastructure will utilize advanced encryption and privacy preserving zero knowledge proofs to prevent the European Central Bank or government agencies from tracking personal data. Following a formal plenary vote, negotiations with EU member states will begin, with plans for a 12 month pilot in 2027 ahead of a full rollout in 2029.

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