Olympic Games Highlight Europe’s Push for Digital Payments

The dominance of foreign payment providers at the Milano Cortina Games underscores Europe's dependency on non-European financial systems. With Visa as the sole card provider, a digital euro by 2029 could offer a European alternative. EU policymakers are balancing digital innovations with the preservation of cash transactions.

The reliance on a single payment provider, Visa, at the Milano Cortina Olympic Games has sparked concerns among European policymakers about the dominance of foreign financial systems and the retreat of cash payments. Striving for economic security, the EU Council has backed efforts to introduce a digital euro by 2029, offering a native alternative for card transactions.

Despite the shift towards digital, cash remains pivotal for in-person transactions, with new installations of ATMs at the Games stores to accommodate those without Visa cards. However, card transactions, dominated by international providers like Visa and Mastercard, still account for most payments across the euro area, posing a challenge for the European Central Bank.

With four decades of Visa's exclusive sponsorship at the Olympics and strained transatlantic ties, EU lawmakers are advancing digital currency initiatives. This strategic move aims to wrestle control back from private payment systems while ensuring economic sovereignty with a future-proof digital euro.

(With inputs from agencies.)