Europe's sovereign control over its money is at risk if it does not push ahead with plans for a digital euro and a European payments system, Reuters cited France's central bank head.
More than 30 European banks are currently setting up a retail system for instant transactions and payments cards to compete in a market currently dominated by foreign companies such as Visa and Mastercard. Some banks are concerned about investing in new payments infrastructure if the European Central Bank moves ahead soon afterwards with plans for a new digital currency that could be used by their retail customers.
Still, bank of France Governor Francois Villeroy de Galhau said time was running out to set up a new payments’ infrastructure at European level, with perhaps only a year or two left until foreign bigtechs overcome the space.
Rather than supplanting banks, Villeroy said they would be used to distribute the central bank digital currency (CBDC) at the retail level and at the wholesale level it could make settling transactions easier and safer.
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