Italy Proposes Fee-Free Digital Euro Transactions Under €10

Italy has proposed introducing an exemption for digital euro transactions under €10, which would favor small businesses. This move is viewed favorably by the European Central Bank (ECB) and other central banking stakeholders.

The ECB aims to introduce the digital euro in 2029, pending regulatory adoption this year. Europe relies heavily on US-based payment schemes like Visa and Mastercard, but the EU seeks greater strategic autonomy in payments with the digital euro as a potential solution.

The proposal includes a merchant service charge cap of up to €0.02 for low-value transactions, especially benefiting small merchants. An EU diplomat stated that they are open to considering a net zero fee structure, which would make the framework simpler.