As part of the Distinguished Guest Lecture Series, MCI welcomed Josef Meichenitsch, Director of the Oesterreichische Nationalbank (OeNB). In his lecture and the subsequent panel discussion, he addressed Europe’s digital sovereignty in payments and provided insights into current developments surrounding the digital euro.
The Digital Euro as a “Twin” of Cash
The lecture drew on recent studies on payment behavior in Europe and Austria. While cash continues to play a central role – particularly in Austria, where around 62% of point-of-sale transactions are still made in cash – a clear shift toward digital payment methods is evident.
Against this backdrop, Meichenitsch positioned the digital euro not as a replacement for cash, but as a complement: “As a central bank, we want to ensure that people can pay the way they choose – whether in cash, by card, or in the future with the digital euro.”
Sovereignty is Key
At the heart of the discussion lies the question of European independence. A large share of digital payments is currently processed via non-European providers such as Visa and Mastercard. This dependency could become a risk, particularly in times of geopolitical tension.
A digital euro could help counter this while offering tangible benefits for consumers, payment service providers, and merchants: it would be free to use across the euro area, ensure high data protection standards, and enable both online and offline payments. In addition, lower transaction costs and increased competition could strengthen the European payments market.
Concerns and Prospects
At the same time, reservations remain. Banks point to potential short-term revenue losses, while parts of the political sphere raise concerns about data privacy and a possible abolition of cash. Meichenitsch emphasized that neither concern is justified: the digital euro is intended to safeguard existing freedoms, not restrict them.
The ongoing legislative process is being carried out at the European level, involving the European Commission, the Council of the European Union, and the European Parliament. Subject to political agreement and subsequent technical implementation, Meichenitsch indicated that a possible introduction of the digital euro could take place in 2029.
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