Banks advocating for a shift from digital euro to Wero, urging increased speed
The European payments landscape is undergoing a significant shift, with the European Central Bank (ECB) and national central banks working tirelessly on a digital version of the European common currency. This initiative, aimed at reducing dependence on dominant US payment service providers, is part of a broader strategy to promote European financial autonomy.
One such European payment alternative is Wero, a payment method driven by a consortium of European banks and payment service providers known as the European Payments Initiative (EPI). The EPI's goal is to build a European payment alternative to US competitors like PayPal, Mastercard, and Visa.
Wero, now available since July 2024, has seen a steady rollout. In Germany, it can be accessed via Postbank and Europe's largest direct bank, ING. Additionally, customers of Sparkassen, as well as Volks- and Raiffeisenbanks, can access the service via the apps of their respective institutions for person-to-person payments. Wero is also available in France and Belgium, apart from Germany.
However, the widespread rollout of Wero has been hindered by plans for a digital euro for private customers, according to Stefan G. Reuß, President of the Sparkassen and Giroverband Hessen-Thuringia. Reuß argues that central banks should no longer adhere strictly to their payment policy neutrality and instead promote Wero to banks that are still hesitant. He suggests forgoing the digital euro for private customers and instead having Wero officially serve as the only Europe-wide payment method.
Despite these calls, Wero has not been officially announced as the only Europe-wide payment method. The ECB, national central banks, and politics are yet to make a definitive statement on the matter.
The push for Wero and other European payment alternatives comes amid concerns about data security risks, geopolitical vulnerabilities, and loss of monetary sovereignty. Europe must be prepared and equipped quickly in case dominant US payment service providers withdraw from the European market due to political turmoil, argues Reuß.
Meanwhile, the digital euro is not expected to be introduced before the end of 2028, according to the latest public statements. The ECB and national central banks are working to strengthen their own digital payment infrastructures to increase regulatory scrutiny and maintain control over payment systems. They are also exploring the regulation of private stablecoins to ensure a secure and sovereign European digital payment landscape.
As the race for European financial autonomy heats up, Wero and the digital euro initiatives are set to play significant roles in shaping the future of European payments.
