EU lawmakers push for digital currency to break US payment dominance

The drive for a state-backed alternative has shifted from a technical ambition to a geopolitical mandate. Supporters argue that the current reliance on American financial infrastructure leaves Europe vulnerable to the whims of foreign providers. Committee chair Aurore Lalucq hailed the vote as a historic milestone, while conservative spokesperson Markus Ferber emphasized that the bloc can no longer accept this dependency.

While the legislative path now moves toward a full parliamentary vote and subsequent negotiations with member states, the timeline remains ambitious. EU economy commissioner Valdis Dombrovskis expressed hope for finalizing the process before the year concludes. However, the project faces significant domestic headwinds. In Germany, persistent concerns regarding government surveillance and the potential erosion of physical cash continue to circulate. European Central Bank president Christine Lagarde remains the public face of the project's defense, consistently rejecting claims that the digital euro poses a threat to privacy or the future of cash.