EU ministers seek agreement on digital euro to be independent of Visa and Mastercard
1. EU finance ministers aim to establish a digital euro currency. 2. This currency could challenge Visa and Mastercard's dominance in payments.
FAQ
Why Bearish?
The introduction of a digital euro could reduce reliance on MA, impacting its revenue streams, akin to how Apple Pay and other fintech innovations challenged traditional payment systems.
How important is it?
The digital euro poses a substantial long-term threat to MA’s market position, making its development noteworthy for investors.
Why Long Term?
If adopted widely, a digital euro could alter payment landscapes over several years, similar to the gradual implementation of contactless payments in Europe.