Digital euro clears key hurdle as EU seeks to break free from U.S. credit cards

The European Central Bank has secured parliamentary backing for launching a digital euro, an electronic payment system designed to reduce the eurozone's dependence on U.S. credit card networks amid rising transatlantic tensions. The digital euro, which will function as a central bank-guaranteed electronic wallet distributed by banks and fintech companies, is scheduled for a 12-month pilot in the second half of 2025 and full launch in 2029. The proposal includes safeguards for traditional banks, such as holding limits per user and restrictions on business usage, to address concerns about deposit outflows.