Europe must achieve payment independence via the digital euro, similar to India’s Unified Payments Interface (UPI), said Burkhard Balz, a member of Deutsche Bundesbank's executive board in Mumbai on Thursday. “India has demonstrated the power of innovation in payments,” he said in reference to UPI at the 6th Global Fintech Fest (GFF) 2025.

He asserted that Europe must achieve payment independence via the digital euro. “Europe needs its own open and trustworthy payments infrastructure," Balz stated, highlighting that the digital euro could serve as a “strategic anchor” for the continent’s financial sovereignty. Europe’s move toward a digital euro aligns with similar efforts by other countries exploring digital currencies to strengthen their financial ecosystems, he added.

Balz noted that much of Europe’s payment system currently depends on non-European providers, mainly from the U.S. “Almost two-thirds of all card payments in the euro area are processed by non-European, predominantly US-based providers such as Visa and Mastercard,” he said. He warned that this over-reliance poses risks to Europe’s autonomy and data security, as critical financial information remains in foreign hands.

He also noted that the G20 has made faster, cheaper, and more inclusive payment systems a global priority. The Bundesbank board member pointed out that most European countries still lack their own domestic payment systems. “Only a little more than one-third of euro area countries have an independent and domestic payment solution,” Balz said. Even those that exist, he explained, are usually limited to national use and cannot easily handle cross-border payments, which depend on international providers.

Explaining the benefits of the digital euro, Balz said it would “operate entirely on European infrastructure,” ensuring a higher level of independence. “It will be a digital twin of cash—state-guaranteed, private, secure, and always available,” he said.

According to him, the system would enable both online and offline payments, even during internet or power outages, and would improve data protection compared to existing digital payment methods.

Balz said the digital euro would also enhance Europe’s economic resilience. “Unlike other means of payment, which are prone to liquidity and credit risks, the digital euro would provide a secure and reliable alternative,” he said. “It represents freedom of choice and strengthens the stability of our monetary system.”