How Digital Euro Will Transform Consumers, Banks, and Fintechs

International financial expert Chaslau Koniukh emphasizes that the digital euro project is “not just a technology, but a new financial foundation for Europe”. According to him, the digital euro can transform consumer behavior, bank strategy, and the competitive dynamics of European fintech. And this is not theory. According to the European Central Bank, the project has already moved into the technical phase and is moving towards a future launch.

Complementing his position, Koniukh notes that the digital euro is becoming a response to the global transformation of the payment environment, where the influence of private fintech platforms and international card systems is growing. He emphasizes that if Europe wants to maintain control over its money flows and ensure strategic autonomy, it needs a tool that combines state guarantees and modern technologies. It is precisely the digital euro, in Koniukh’s view, that creates such an opportunity for the first time and brings the European financial system to a new level of competitiveness.

The New Architecture of European Money

After completing the preparatory stage, the ECB announced the beginning of the technical phase of the digital euro. At this stage, infrastructure is being created, architectural elements are being tested, and application scenarios are being modeled. According to official data, if legislation is adopted, pilots can start in 2027, and launch is possible closer to 2029.

The digital euro is positioned as an “electronic equivalent of cash”, accessible, secure, and suitable for offline and online use. In the official ECB documentation, a commitment to the principle of privacy and obligations to comply with financial monitoring rules are emphasized.

“The digital euro will give citizens the opportunity to obtain for the first time a form of money that combines the convenience of digital payments with trust in state monetary obligations,” notes Koniukh.

The ECB also created an innovative platform in which about 70 organizations participate. Banks, fintechs, and retailers on the platform test real-world scenarios for using the digital euro: from internet payments to offline operations.

According to Koniukh, market participation in the development of the digital euro is critical.

“If a new form of money does not find resonance with users and business, it will be doomed, regardless of technological perfection,” notes the international financial expert.

Changes in the Banking Sector

For banks, the digital euro is both a challenge and an opportunity. A study by Fintechnews Switzerland states that implementation could require 18-30 billion euros if modernization of systems and infrastructure updates are taken into account. Meanwhile, the ECB provides an alternative assessment that is significantly more moderate. According to the Central Bank’s calculations, the sector’s expenditure on implementing the digital euro could range from 4 to 5.8 billion euros.

Banks remain key intermediaries. They will provide customer identification, operations, wallet support, and compliance. The distribution model remains two-tiered, where the central bank provides basic infrastructure, and banks serve users.

Koniukh believes that the digital euro can be a stimulus for updating banking infrastructure. “Many European banks have postponed digital transformation for too long, and the digital euro could be a moment of truth,” he emphasizes.

At the same time, the risks are obvious. The greatest burden will be borne by regional and medium-sized banks, which find it more difficult to finance large-scale IT projects. At the same time, costs could significantly affect the sustainability of their business models.

The Effect for Fintechs and the Payment Market

For fintechs, the digital euro could be a historic opportunity. With the creation of a unified architecture, fintech companies will be able to build new products on top of standardized infrastructure. European research materials emphasize that the digital euro can reduce the EU’s dependence on foreign payment systems and create conditions for the growth of European technology companies.

Fintechs are already testing Digital Euro capabilities. Real-world scenarios are being tested on the innovation platform: conditional payments, offline operations, hybrid wallets, and other solutions.

“The digital euro could be a rare case where new infrastructure opens the market for fairer competition rather than strengthening the positions of a few major players,” notes Chaslau Koniukh.

Digital wallets can also strengthen financial inclusion, especially for users who prefer simple and fast payments.

Regulatory and Systemic Challenges

The only remaining barrier is legislative uncertainty. Until the digital euro law is approved, it cannot become a legal means of payment. The ECB has repeatedly emphasized that further implementation of the project fully depends on the decision of the European Parliament and the EU Council.

The second challenge is privacy. Despite statements about confidentiality, the digital euro must comply with anti-money laundering rules. Currently, developers are seeking a balance between minimizing data and complying with legal requirements. The third challenge is a period of uncertainty that may last until the end of the decade. Banks and fintechs are forced to invest in advance without full clarity on standards and the scope of requirements.

“Those who are already building business models around digital payments adapt fastest to the digital euro. Slowing down the process means giving the initiative to competitors,” notes international financial expert Chaslau Koniukh.

The digital euro seeks to combine the technological sophistication of modern payments with trust in state money. Chaslau Koniukh emphasizes that the project is intended to “not replace existing money, but to adapt the European financial system to the twenty-first century”.

For consumers, the digital euro could become a convenient and secure instrument suitable for everyday payments. For banks, it opens the opportunity to modernize infrastructure and reconsider approaches to customer service. For fintechs, a chance is created to compete on equal terms with global players.

However, the success of the project depends on legislative decisions, technical readiness, the ability of banks to finance changes, and the willingness of users to trust a new form of money. This is precisely why, as Koniukh notes, the digital euro “will become a test of the maturity of the entire European financial architecture”.