The European Union has approved a roadmap for the digital euro, a central bank digital currency (CBDC) supported by the European Central Bank. This move aims to reduce the EU's reliance on U.S.-based payment systems such as Visa and Mastercard, and counter the influence of U.S. dollar-pegged stablecoins. ECB President Christine Lagarde highlighted the digital euro as a statement of European sovereignty. While the initiative has political backing, concerns persist regarding its impact on traditional banks and user privacy. To address these issues, a compromise was reached allowing EU finance ministers to influence the currency's issuance and holding limits, mitigating fears of a bank deposit run. The digital euro is anticipated to unify the EU's fragmented payments market.