Source: cyprus-mail.com
Senior European and Cypriot central bank officials highlighted the growing importance of the digital euro in strengthening the European Union’s strategic autonomy, during an event held at the House of the Euro in Brussels.
The discussion, held on April 22, featured Central Bank of Cyprus (CBC) payments supervision director Stelios Georgakis alongside Deutsche Bundesbank president Joachim Nagel, who delivered the keynote address.
“The digital euro has moved far beyond a technical concept, it is now a political project for more sovereignty,” said Bundesbank president Joachim Nagel.
He stressed the need to reinforce Europe’s payment infrastructure so that it becomes more independent and resilient in an increasingly digital environment.
“With this digital complement to cash, we will renew the role of central bank money in an increasingly digital world,” he said, explaining that the digital euro is intended to complement rather than replace physical cash.
Nagel pointed out that around two-thirds of card payments in Europe are currently processed through non-European infrastructures, creating a significant dependency.
He said the digital euro could help reduce this reliance and enhance European payment sovereignty, while also addressing fragmentation and supporting innovation.
“I strongly believe that the legislative process can be concluded by the end of the year, paving the way for a digital euro that embodies Europe’s vision of sovereignty,” he said, adding that the first issuance could be possible from 2029 onwards.
During the panel discussion, Georgakis presented the European Central Bank’s comprehensive payments strategy, which includes both retail and wholesale systems.
He explained that the strategy encompasses instant payments and the digital euro, as well as the development of wholesale systems integrating digital assets and distributed ledger technology.
Georgakis also highlighted the importance of cross-border payment connectivity, aimed at strengthening the international role of the euro.
The panel brought together representatives from financial institutions, the European Commission and civil society to examine how the digital euro can support Europe’s digital transformation.
The discussions underscored the broader ambition to build a more resilient and autonomous financial system capable of supporting the EU’s long-term economic and technological objectives.