“That is the point” – Is the The European Union (EU) banning American credit cards? European Central Bank President Christine Lagarde gave her verdict

Social media users have claimed that ECB President Christine Lagarde has disclosed intentions to eliminate entities such as Visa, Mastercard, and PayPal.
The European Union is purportedly seeking to eliminate American payment cards, including Visa and Mastercard, as well as foreign online payment platforms like Alipay and PayPal, according to viral social media posts.

According to certain postings on X, Christine Lagarde, the President of the European Central Bank, has declared her intention to replace the payment systems with European alternatives.

A Dutch post even asserts that Lagarde intends to replace these payment methods with the central bank’s forthcoming digital euro.

Nevertheless, Lagarde’s statements have been distorted.

A Google search leads to an interview she conducted with Irish radio station Newstalk on April 2, during which she cautioned that Europe must cease its dependence on technology from the United States and China.

Lagarde emphasises the significance of Europe’s ability to manage its own digital payments at approximately the 6:20 mark.

In the interview, Lagarde stated, “When you consider it at the moment, a significant number of our digital payments—whether they are e-commerce, peer-to-peer, or utilising your phone or card—are always dependent on non-European infrastructure.”

“Visa, Mastercard, PayPal, and Alipay are the most common payment methods, regardless of whether you use a card or a phone.” What are the origins of all of those? She continued, “Well, either the United States or China.” “And the entire infrastructure mechanism that enables the payment—credit and debit—is not a European solution.”

“That is the point at which I believe we must mitigate that vulnerability and ensure that there is a European offer that is readily available, just in case.” Additionally, Lagarde said, “You never know.”

Consequently, Lagarde’s intention was to establish a European alternative in addition to the payment methods of the United States and China, as evidenced by her use of language. She did not explicitly advocate for their elimination.

These payment mechanisms have already been proposed as European equivalents: Wero, for instance, is a digital wallet that enables customers to transfer money using only their phone number. It is progressively becoming possible for users to send money to other users in Europe.

This was the outcome of the European Payments Initiative, a network of European banks that was established in 2021 with the objective of offering a unified digital payment service to all enterprises and citizens.

Wero is presently accessible in Belgium, France, and Germany, with additional countries are anticipated to follow suit.

EuroVerify also contacted the European Central Bank (ECB), which denied the online allegations.

“The European Central Bank is not advocating for the abolition of payment systems offered by companies such as Visa, Mastercard, PayPal, or Alipay,” it stated in an email.

“Instead, we advocate for a competitive and diverse payment landscape that encompasses both private and public options.”

It was further stated that a digital euro would be a supplementary option for consumers and businesses, rather than a replacement, thereby complementing cash and existing digital payment methods.

EuroVerify has previously refuted numerous false claims regarding the digital euro and the purported abolition of cash in Europe. These claims include the notion that Spain is eliminating the €50 banknote, the Nordic countries are prohibiting digital transactions, and Lagarde intends to eliminate cash in order to aid in the fight against climate change.