The real story behind the digital currency the European Union will launch

The European Union is advancing the launch of a digital euro to break dependence on American credit card companies. A first pilot is expected in 2027, and businesses will be required to accept the currency starting in 2029. Banks fear high costs and are skeptical about public adoption.

The European Union is promoting a broad initiative to launch a digital euro, an electronic alternative to cash that would sever financial dependence on American credit card companies Visa and Mastercard. According to Fortune magazine, a first pilot involving 36 financial institutions is expected in the second half of 2027, with the goal of requiring all businesses in the Union to accept the currency by 2029. The urgency stems from the fact that in 2025, Visa and Mastercard processed 47% of card transaction value in the eurozone, and 95% in the UK. The share of businesses not accepting cash has tripled to 12% in three years. The new currency is expected to save high clearing fees, which rose by 34% between 2018 and 2022, and to unify Europe's fragmented payment system. Alongside the benefits, banks fear deposit migration and operational costs. The central bank estimates setup costs of €1.3 billion and annual operating costs of €300 million. For commercial banks, the total cost is estimated at €4 to €6 billion over four years. Experts warn that Europe may be solving yesterday's problems, while in the US, private stablecoins processed transactions worth $33 trillion in 2025.