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Introduction
Ladies and gentlemen, I am delighted to be part of the sixth edition of The Global Fintech Fest – one of the largest Fintech conferences in the world. The festival brings together Fintech leaders from around the world.
To this day, 19 years ago, one of the most significant steps in internet history was taken: Google acquired YouTube for just 1.65 billion US dollars. Today, YouTube is the largest video-sharing platform in the world, dominating the global market.
This is just one example of how major, predominantly US-based technologies dominate global digital markets. In industries such as electronic and social media commerce, where innovation and strategic use of large data sets play a crucial role, companies like Google, Apple, and Amazon play a key role. This also applies to digital mass payments in Europe, where Visa, Mastercard, and Paypal hold a significant market share.
As global geopolitical uncertainty increases, it is not just India that is under pressure. For Europe, it has reaffirmed the need to strengthen our strategic independence. EURO Digital represents a cornerstone of European digital sovereignty.
European Payments under Geopolitical Uncertainty
Let me touch on cross-border payments in Europe for a moment. Currently, almost two-thirds of all card payments in the Eurozone are processed by non-European providers, mainly from the US such as Visa and Mastercard.
And almost two-thirds of all savings banks in the region do not have an internal payment solution. Only just over a third (35%) have their own, independent internal solution – one of them being Germany with its girocard. However, these payment solutions are mostly limited to national use and specific applications. Cross-border payments in the Eurozone typically require the infrastructure of international providers.
Furthermore, electronic commerce payments are also dominated by non-European providers. For example, PayPal in Germany holds a market share of almost 30%, making it the primary payment method in online shopping.
Moreover, new entrants face difficulties penetrating the market as they have to compete against established competitors, mostly Americans. Technological developments have further strengthened these dependencies.
The popularity of these non-European systems is understandable, as they are reliable and usable across borders.
However, payment systems are not just a technical issue; they are critical infrastructure. Deterioration of these systems could have serious financial and economic consequences. Additionally, non-European actors such as international card systems decide on system taxes that European banks have to pay, and private providers gain valuable information on economic and personal relationships, raising concerns about data sovereignty.
Looking to the future, recent developments suggest that Stablecoins could further increase dependence on non-European companies in the payment industry. The US government supports the crypto-fringe market and promotes the issuance of privately issued Stablecoins pegged to the US dollar. These could quickly expand their presence, especially in cross-border payments and digital applications. However, widespread use of Stablecoins in US dollars could pose significant risks to the Eurozone: European payment sovereignty would be at risk.
This dependency raises questions about Europe’s digital sovereignty. Europe needs its own infrastructure, open and trustworthy for payment traffic. Here, EURO Digital can become a strategic anchor.
The challenges we face in Europe reflect global trends. G20 enables faster, cheaper, more transparent, and comprehensive (cross-border) payments. For example, India has demonstrated innovation in this area with its unified payment interface. Other jurisdictions are similarly exploring digital currencies and new settlement arrangements, considering how their local payment systems and currencies – like the Indian Rupee – can play a stronger role in facilitating trade and financial flows. These developments highlight that the debate on money and digital payments is not just a European but a truly global effort.
Strategic Response of EURO Digital
Now let me address the European response, our vision of a digital Euro that will promote the autonomy, efficiency, and resilience of the European payment sector.
Firstly, EURO Digital will enhance the autonomy of the European payment system. Europe cannot afford to heavily rely on foreign providers for critical infrastructure, such as in payments. Euro Digital would operate entirely on European infrastructures and ensure operational independence.
Furthermore, EURO Digital will improve the autonomy of every European citizen. This "digital twin" will embody many of their characteristics. Like cash, it would always be government-backed, provide a higher level of confidentiality than other digital payment methods, and be usable throughout Europe. Whether in stores, online shopping, or transferring money to friends – EURO Digital is designed to facilitate simple, secure, and efficient data payments. Additionally, offline payments would be possible to a limited extent, ensuring functionality even in internet disruptions or power outages. Euro Digital means choice for those who want to use digital currency.
Secondly, EURO Digital would create a unified payment area in the Eurozone. Uniform European standards would guarantee a robust and future-proof payment system while simplifying cross-border transactions. The same standards, the same scheme, the same "payment rails" across Europe. Therefore, EURO Digital would enhance efficiency in the Eurozone. Moreover, EURO Digital could potentially be used abroad in the future – although this is not our primary goal in the near future.
Thirdly, EURO Digital would strengthen the resilience of economies in the Eurozone against competing coins and Stablecoins while maintaining the function of anchoring central money. Unlike Stablecoins, which are susceptible to liquidity and credit risks, EURO Digital would provide a secure and reliable alternative. From a European perspective, Stablecoins, especially those pegged to the US dollar and unregulated in Europe, are not a viable substitute.
This ambitious project, however, will take time. At the Bundesbank, we anticipate a phased introduction at the earliest in 2028. Dies ist auch auf das noch laufende Gesetzgebungsverfahren zur Einführung eines digitalen Euro durch die europäischen Mitgesetze zurückzuführen.
4 Fazit
Meine Damen und Herren,
Lassen Sie mich abschließend eine entscheidende Perspektive in der nicht-digitalen Welt hervorheben. Wie der amerikanische Baseballspieler Hank Aaron sagte: „Im Ballspiel und im Leben hat ein Mensch die Möglichkeit, etwas Großartiges zu tun. Wenn dieser Moment kommt, zählen nur zwei Dinge: bereit zu sein, den Moment zu nutzen, und den Mut zu haben, die beste Wiege zu schaffen.“ Ich bin zuversichtlich, dass Europa die Gelegenheit hatte, etwas Großartiges zu leisten, und ich kann Ihnen versichern: Das Eurosystem ist bereit, die Effizienz, Widerstandsfähigkeit und Autonomie des europäischen Massenzahlungsverkehrs zu verbessern. Ich bin zuversichtlich, dass Europa mit der Unterstützung mutiger Gesetzgeber die beste Wiege sein wird.
Vielen Dank für eure Aufmerksamkeit!
Fußnote:
- Originaltext Die europäischen Zahlungsstandards, das Zahlungsschema und die Zahlungswege sind in ganz Europa gleich. EURO Digital würde die Effizienz im Euroraum steigern, indem es dieselben Standards und Zahlungswege verwendet. Es könnte auch in Zukunft im Ausland eingesetzt werden, obwohl dies nicht das Hauptziel ist.
EURO Digital würde den Widerstand der Volkswirtschaften im Euroraum gegen konkurrierende Münzen und Stablecoins stärken und gleichzeitig die Funktion der Verankerung des zentralen Geldes beibehalten. Im Gegensatz zu Stablecoins, die anfällig für Liquiditäts- und Kreditrisiken sind, wäre EURO Digital eine sichere und zuverlässige Alternative. Stablecoins, insbesondere solche mit Bezug zum US-Dollar, die in Europa nicht reguliert sind, sind aus europäischer Sicht kein geeigneter Ersatz.
Das ehrgeizige EURO Digital-Projekt wird jedoch Zeit brauchen. Bei der Bundesbank wird mit einer schrittweisen Einführung frühestens im Jahr 2028 gerechnet. Dies liegt auch am laufenden Gesetzgebungsverfahren zur Einführung eines digitalen Euro durch die europäischen Mitgesetze.
Abschließend möchte ich betonen, dass EURO Digital die europäische digitale Souveränität stärken würde, was angesichts der zunehmenden globalen geopolitischen Unsicherheit von entscheidender Bedeutung ist.
In Bezug auf die europäischen Zahlungen unter geopolitischer Unsicherheit ist es wichtig zu beachten, dass große, vorwiegend US-amerikanische Technologien die globalen digitalen Märkte dominieren. In Europa dominieren Unternehmen wie Visa, Mastercard und Paypal den digitalen Massenzahlungsverkehr. EURO Digital würde dazu beitragen, die Abhängigkeit von außereuropäischen Unternehmen zu verringern und die europäische digitale Souveränität zu stärken.
Die Herausforderungen, vor denen Europa steht, spiegeln sich weltweit wider. Die G20 haben beispielsweise Maßnahmen ergriffen, um grenzüberschreitende Zahlungen zu verbessern. EURO Digital könnte dazu beitragen, Europas Rolle im globalen Zahlungsverkehr zu stärken und die digitale Souveränität Europas zu sichern.
Vielen Dank für Ihre Aufmerksamkeit! These developments illustrate that the debate on money and digital payments is not just a European effort, but a truly global one.
Strategic Response from EURO Digital:
Let me now address the European response, our vision of a digital Euro that will enhance the autonomy, efficiency, and resilience of the European payment sector.Firstly, EURO Digital will enhance the autonomy of the European payment system. Europe cannot afford to heavily rely on foreign providers for critical infrastructure, such as in payment transactions. Euro Digital would operate entirely on European infrastructures and ensure operational independence.
Furthermore, EURO Digital will enhance the autonomy of every European citizen. This "digital twin" will embody many of its characteristics. It would be state-guaranteed like cash, offer a higher level of confidentiality than other digital payment methods, and be usable across Europe. Whether in stores, online shopping, or transferring money to friends, EURO Digital is designed to enable simple, secure, and efficient digital payments. Additionally, offline payments would be possible to a limited extent, ensuring functionality even during internet or power outages. Euro Digital offers choice for those who wish to use digital payment methods.
Secondly, EURO Digital would create a unified payment area in the Eurozone. The uniform European standards would guarantee a strong and future-proof payment system while simplifying cross-border transactions. The same standards, the same scheme, the same "payment rails" across Europe. Therefore, EURO Digital would enhance efficiency in the Eurozone. Additionally, EURO Digital could be used internationally in the future, although this is not our main goal in the near future.
Thirdly, EURO Digital would strengthen the resilience of economies in the Eurozone against competing coins and stablecoins while maintaining the function of anchoring central money. Unlike stablecoins, which are vulnerable to liquidity and credit risks, EURO Digital would provide a secure and reliable alternative. From a European perspective, stablecoins, especially those tied to the US dollar and unregulated in Europe, are not a viable substitute.
This ambitious project will take time. At the Bundesbank, we anticipate a gradual introduction no earlier than 2028. This is also due to the ongoing legislative process for the introduction of a digital Euro by the European co-legislators.
Conclusion:
Ladies and gentlemen,
Let me finally highlight a crucial perspective in the non-digital world.
As American baseball player Hank Aaron said: "In the game and in life, a person has the opportunity to do something great. When that moment comes, only two things matter: being ready to seize the moment, and having the courage to create the best cradle."I am confident that Europe has had the opportunity to achieve something great, and I can assure you: the Eurosystem is ready to enhance the efficiency, resilience, and autonomy of the European mass payment system.
I am confident that with the support of bold lawmakers, Europe will be the best cradle.
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