The European Payments Council (EPC) has released a new report outlining the potential of fintech innovation to drive adoption of the digital euro. The study emphasizes that fintech companies will play a vital role in integrating the CBDC into Europe’s existing payment systems.
According to the report, the digital euro could serve as a foundation for faster and cheaper cross-border transactions within the eurozone. Fintechs specializing in instant payments and identity verification are expected to become key partners in this effort.
The EPC suggests that fintech firms could help deliver new user-facing services, such as programmable payments and automated invoicing, once the digital euro is live. These features could give small businesses and consumers new ways to manage digital transactions with improved transparency and speed.
However, the council also warned that ensuring fair competition between banks and non-banks will be essential. Regulators are urged to maintain a level playing field, particularly in terms of access to the Eurosystem’s settlement infrastructure.
The digital euro, the report concludes, has the potential to “catalyze the next wave of European fintech growth” — provided the rollout is accompanied by clear technical and legal standards.