When the European Central Bank first floated the idea of a digital euro in 2021, it felt to many like a speculative gesture — a bureaucratic nod to the rising influence of cryptocurrency and the growing power of tech giants in global payments.
But here in Lithuania, the idea never felt abstract.
Not after Russia’s invasion of Ukraine. Not after waves of cyberattacks across Eastern Europe. And certainly not as European governments continue to pay billions in fees to American card networks just to process domestic transactions.
“For us, this isn’t about hype,” says Edgars Lasmanis, founder of Lithuanian fintech firm Walletto. “It’s about sovereignty, resilience, and real-world use cases.”
Now, with legislative groundwork nearly complete and prototypes in development, Lithuania is emerging as one of the most prepared — and most motivated — backers of the digital euro: a central bank digital currency (CBDC) designed to complement cash, operate offline, and offer a pan-European alternative to Visa, Mastercard, and Big Tech.
Why the Baltic states are listening
Across much of the eurozone, the digital euro is still viewed with ambivalence. Citizens express concern about surveillance, centralisation, and the vague fear that something valuable is being replaced with something cold and programmable.
But in Lithuania — a country of fewer than 3 million people that borders both Russia and Belarus — the mood is more pragmatic.
“We know what it means to be cut off,” says Ingrida Simonaitytė, a cybersecurity consultant in Vilnius. “We’ve seen what happens when infrastructure fails. Having your own payment system isn’t just nice — it’s national security.”
According to data from the Bank of Lithuania, the country is almost entirely dependent on international card schemes for everyday payments. Neither Lithuania nor 13 other eurozone countries currently have a domestic card system — a dependency that European officials describe as a strategic vulnerability.
In 2022, the EU paid an estimated €1 billion in card fees to U.S. providers. Lithuania alone handles nearly all of its digital transactions through Visa, Mastercard, Apple Pay, and Google Pay.
“That kind of reliance on external infrastructure isn’t sustainable,” Lasmanis says. “Especially when you consider that geopolitics now includes cables, chips, and payments.”
What exactly is the digital euro?
Unlike Bitcoin or stablecoins, the digital euro is state money. It would be issued by the Eurosystem — the ECB and national central banks — not commercial banks or private platforms.
The goal is not to eliminate cash, but to create a parallel, digital means of payment: one that is free to use, widely accepted across the eurozone, and capable of functioning even during internet outages or political instability.
Key features include:
- Offline payments, even without mobile or data signal
- Free basic services for individuals, including transfers and point-of-sale payments
- No commercial data harvesting, with strong privacy guarantees
- Programmable capabilities for governments (like automatic tax refunds or disaster relief)
The plan, currently in the preparatory phase, is to roll out basic infrastructure by 2027, with a full rollout by 2030. The ECB emphasizes that it has no commercial interest in transaction data and that privacy will be “as close to cash as possible,” particularly for offline transactions.
“It’s designed to be neutral and foundational,” says Christine Lagarde, ECB President, in a recent speech. “A public option for digital money.”
A digital euro, built in Vilnius?
In Vilnius, the central bank has already built a live demo of how the digital euro might work — including offline payments, QR-based peer-to-peer transfers, and real-time tax declarations for merchants.
Behind the scenes, firms like Walletto are helping to shape how private-sector intermediaries — banks, PSPs, fintechs — will integrate with the system.
“The idea is not to compete with private companies,” says Tomas Garbaravičius, an adviser at the Bank of Lithuania. “It’s to give them the rails to build better services.”
Walletto, which already offers card issuing, merchant acquiring, and bulk payouts, is positioning itself to be one of those builders. Lasmanis says the company is ready to integrate digital euro functionality into its platform the moment a viable API is available.
“We already serve clients across the EEA,” he says. “If we can offer them digital euro capabilities — especially offline or instant settlement — it’ll be a game changer.”
From Brussels to Washington: The global view
While the EU pushes forward with the digital euro, other major economies are watching — or hesitating.
In the United States, efforts to develop a digital dollar remain stuck in early research stages. The Federal Reserve has been cautious, citing concerns over bank disintermediation, privacy, and political backlash.
“We’re watching Europe closely,” said Michael Barr, Vice Chair for Supervision at the Fed, during a 2024 testimony. “But any U.S. CBDC would require Congressional approval — and public trust.”
That trust may be hard to earn. In a polarized political environment, CBDCs are often framed as government overreach. In contrast, Lithuania has framed the digital euro as a democratic tool — giving citizens options, not orders.
“Nobody will be forced to use the digital euro,” Lasmanis emphasizes. “But people should be able to. Especially in a crisis.”
Can it really work offline?
Perhaps the most radical feature of the digital euro is its ability to work without internet or mobile connection. Using secure chips embedded in smartphones or cards, users could transfer funds directly — no cloud, no server, no telecoms.
“This is where the innovation really lies,” says Lisa Thompson, a digital currency researcher at MIT. “Offline capability breaks the dependence on real-time infrastructure. It’s closer to cash than any digital payment we've seen.”
In Lithuania, that capability is seen not as a curiosity, but a necessity.
“If the cable goes out, if there's a cyberattack, if there’s another war — we need fallback options,” says Simonaitytė. “That’s what the digital euro offers. Not speculation — resilience.”
But what about privacy?
Despite ECB assurances, privacy remains a flashpoint — particularly in Germany, where cash usage is culturally significant.
Surveys show that many citizens fear surveillance, even if the central bank promises pseudonymisation, data encryption, and strict legal firewalls between banks and public authorities.
Lasmanis is cautiously optimistic.
“Trust has to be earned,” he says. “That’s why the offline mode matters. If you can pay without a network, without a trail, then the system becomes credible.” He adds that privacy should not be seen as incompatible with compliance: “It’s possible to have robust AML and still protect the user. We do it every day.”
Europe’s quiet counterweight to Big Tech
Ultimately, the digital euro is about rebalancing power — not just within finance, but within society.
Visa and Mastercard are global businesses. Apple and Google own the device layers. Commercial banks own deposits. But central banks, in theory, serve the public. And that distinction matters.
“A payments system should not be hostage to any one provider — or country,” says Lagarde.
If successful, the digital euro could become the first truly public digital currency used at scale — offering Europeans a way to pay, get paid, and store value without handing over their data, identity, or dependence.
Back in Vilnius, the work continues
At Walletto’s office, developers are already mapping what a future integration might look like: merchant terminals that accept digital euro alongside cards; apps that let users move between money types; APIs that let governments disburse aid instantly.
“The future of money is modular,” Lasmanis says. “And the digital euro is one of those modules.”
His view is neither utopian nor cynical. It’s pragmatic — a view shaped by Lithuania’s geography, its past, and its digital future.
“In the Baltics, we don’t ask if something is necessary. We ask: what happens if we don’t have it?”
About Walletto
Walletto is a European-licensed electronic money institution (EMI) and all-in-one fintech platform headquartered in Lithuania. As a principal issuer and acquirer with direct Visa and Mastercard partnerships, Walletto provides secure, scalable solutions for card issuance, acquiring, and electronic payments. Its integrated infrastructure enables businesses to launch, grow, and expand globally with speed and compliance confidence. For more information, visit walletto.eu.
Media Contact
Julija Pudenko
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