What did the European Central Bank decide about the digital euro?

The European Central Bank chose to build the digital euro using open European payment standards instead of relying on proprietary systems like Visa and Mastercard. It signed agreements with ECPC, nexo, and Berlin Group. This move aims to create a shared, low-cost infrastructure for digital payments across the eurozone.

Why is the ECB moving away from Visa and Mastercard?

The ECB wants to reduce Europe’s dependence on global card networks like Visa and Mastercard. Proprietary systems charge fees and limit competition, while open standards allow broader access. The shift is designed to give European providers more control and lower transaction costs.

What are the three standards the ECB selected?

The ECB selected CPACE (for contactless tap-to-pay), nexo standards (for merchant and ATM connectivity), and Berlin Group standards (for account-based transfers and APIs). Together, these cover the full payment stack from front-end transactions to backend processing. This layered approach allows interoperability across banks, fintechs, and merchants.

How does this affect payment providers and fintech companies?

European payment providers and fintechs could benefit from lower barriers to entry and reduced reliance on expensive card networks. Open standards mean they can build services without paying licensing fees to global schemes. This could increase competition and innovation in the European payments market.

What does this mean for Visa and Mastercard’s business model?

This is a direct competitive threat to Visa and Mastercard in Europe, as it promotes alternatives to their payment rails. If widely adopted, the digital euro could reduce transaction volumes flowing through their networks. However, the impact depends on regulatory approval and actual user adoption.

How important is the Berlin Group standard in this plan?

Berlin Group standards already power about 80% of Europe’s open banking APIs under PSD2. This makes it a proven and widely adopted framework. Its inclusion strengthens the digital euro’s chances of scaling quickly across existing financial infrastructure.

What role does regulation play in the digital euro rollout?

The digital euro cannot fully launch without EU lawmakers approving the necessary regulation. Until then, the standards remain optional and adoption is uncertain. Regulatory approval is the key catalyst that will determine whether this system achieves scale.

What did ECB official Piero Cipollone say about the move?

ECB board member Piero Cipollone said the open standards will create a “free alternative” to proprietary systems. He added they will help European providers invest, innovate, and compete across the euro area. This highlights the strategic goal of boosting regional financial independence.

ECB taps open standards to challenge card giants

Written by BloombergPublished Apr. 26 2026Last Updated Apr. 26 2026

The European Central Bank signed agreements with European standards bodies to build the digital euro on open infrastructure, reducing reliance on global card networks.

The framework uses standards from European Card Payment Cooperation, nexo, and the Berlin Group to enable tap-to-pay, merchant acceptance, and account-based transfers across the eurozone.

“The open digital euro standards will provide a European free alternative to current proprietary standards,”

Said Piero Cipollone.

The system replaces proprietary rails dominated by Visa and Mastercard with shared protocols that allow providers to operate without paying network fees.

CPACE will handle contactless payments, nexo will connect merchant systems and acquirers, and Berlin Group standards will support transfers and integrations already used by most European banks.

The move could allow national payment schemes to scale across borders and reuse existing terminals, aligning with initiatives like Wero aimed at reducing dependence on US-based providers.

However, the rollout depends on EU lawmakers approving digital euro legislation, without which adoption remains optional and large-scale deployment uncertain.