European Central Bank (ECB) President Christine Lagarde has called on the European Union to prioritize the creation of its own digital payment platform, warning against the bloc’s over-reliance on foreign-owned systems.
Speaking during an interview on NewsTalk, Lagarde stressed that a significant portion of Europe’s digital transactions including e-commerce, peer-to-peer payments, and card or mobile payments depend on infrastructures owned by companies in the United States and China. She emphasized the need for Europe to develop a homegrown solution that could provide financial and technological independence.
“A lot of our digital payment, when you do e-commerce, peer-to-peer, or use your card or phone, relies on non-European infrastructure,” Lagarde said. “We need to reduce that vulnerability and ensure there is a European option available just in case.”
Lagarde’s remarks reflect growing concerns within the EU about digital sovereignty. The current landscape leaves the continent exposed to external risks, including geopolitical tensions and regulatory differences. Developing a European digital payment infrastructure would not only enhance security but also serve as a strategic asset in safeguarding the region’s financial ecosystem.
The ECB president pointed out that this initiative goes beyond financial transactions—it is a crucial step toward reinforcing Europe’s autonomy in areas such as trade, defence, and overall economic policy.
“We should not be exclusively focused on what is happening on the other side of the pond,” Lagarde added. “We should focus on our strengths at home and regain a degree of independence that we currently lack.”
She also urged for the consolidation and better regulation of the EU’s fragmented capital markets, which would complement the digital payments initiative and bolster Europe’s economic standing.
Lagarde’s call comes amid ongoing tensions between the EU and the United States, particularly in light of proposed tariffs by former President Donald Trump. While the details of the tariffs remain under wraps, they highlight the growing need for Europe to chart a more self-reliant course in various sectors, including finance and technology.
With momentum growing behind the digital euro project, Lagarde’s remarks could accelerate efforts toward building a robust, sovereign digital payment ecosystem for the EU.
