Core Viewpoint - The digital euro aims to protect European card schemes and maintain the central role of banks in the euro zone payments system, as stated by a senior European Central Bank (ECB) policymaker [1]. Group 1: Digital Euro and Banking - The ECB's initiative for a digital euro is a response to the declining role of cash and aims to compete with private forms of money [2]. - The digital euro is designed to preserve the central position of banks in the payments landscape, despite the risks posed by stablecoins and other private solutions [3]. - Banks risk losing not only revenue but also access to crucial customer payment data, which is essential for offering additional profitable services [3]. Group 2: Payment Schemes and Fees - The ECB intends to protect European payment schemes, such as Italy's Bancomat and Spain's Bizum, by structuring the digital euro system to be cost-effective for shop owners [4]. - The fee cap for merchants using the digital euro network will be lower than that of international payment networks but higher than domestic schemes, thereby favoring domestic payment solutions [5]. - Currently, only eight out of 21 euro zone members have a national payments scheme, with the majority relying on international networks [5]. Group 3: Strategic Risks and Legislative Support - The ECB has identified the reliance on international payment schemes, like Visa and Mastercard, as a strategic risk, given that over three-quarters of transactions in Europe occur through these networks [6]. - After a two-year delay, the European Parliament has recently provided significant backing for the ECB's proposal to issue the digital euro [6].