EU Challenges Dollar Dominance with Strategic Push for Digital Euro
The European Union is accelerating plans for a digital euro to create a “sovereign” European payment infrastructure. EU finance ministers solidified a common position this week, framing the central bank digital currency (CBDC) as a strategic alternative to US-dominated payment rails.
The agreement grants member states a say in the project’s rollout, a crucial political compromise. ECB President Christine Lagarde explicitly tied the currency to European sovereignty, highlighting its role in enabling cross-border payments on European terms.
Despite the strong political backing, the technical and legislative journey is long. The ECB aims for legislation by 2026, meaning the digital euro’s issuance is still years away, but the geopolitical motivation is now firmly driving the agenda.
