European Central Bank warns of strategic vulnerability in payment systems

The European Central Bank has warned of a strategic vulnerability regarding Europe's dependence on major American payment networks. Currently, nearly two-thirds of card transactions in the eurozone are processed by non-European companies, such as Visa, Mastercard, and American Express.

This dependency has become a geopolitical concern following instances where US sanctions have impacted individuals in Europe. For example, French judge Nicolas Guillou, targeted by US sanctions related to his role in the International Criminal Court, found himself unable to use common payment methods or services like Amazon and Airbnb. Similarly, UN Special Rapporteur Francesca Albanese has faced similar pressures.

Private European companies often block accounts of sanctioned entities to avoid conflict with the US administration, a practice highlighted by BNP Paribas's 2014 decision to pay $9 billion to settle investigations regarding operations in sanctioned countries like Iran and Sudan. Consequently, there is an increasing push for Europe to develop its own independent payment platforms to mitigate the risk of financial systems being used as instruments of geopolitical pressure.