Italy Proposes Fee Exemption for Digital Euro Transactions Under €10

Italy has proposed exempting digital euro transactions under €10 from fees, aiming to benefit small businesses. According to sources and documents consulted by Euronews, this move is seen positively by central banking circles, particularly the European Central Bank (ECB). The digital euro is being developed with the ECB aiming for a potential first issuance in 2029, provided necessary regulation is adopted this year.

The EU seeks greater strategic autonomy in payments and views the digital euro as a possible solution to Europe's dependence on US-based payment systems like Visa and Mastercard. With legal tender status, merchants would generally be required to accept the digital euro, subject to exceptions. Negotiators are discussing how fees should be allocated among market participants to avoid disadvantaging small merchants.

An EU diplomat, speaking anonymously, said the proposal includes a merchant service charge cap of up to €0.02 for low-value transactions, especially for small merchants. However, they are open to considering a net zero outcome, which would effectively result anyway.