The European Parliament’s Committee on Economic and Monetary Affairs approved the digital euro project in a move aimed at reducing the European Union’s reliance on U.S.-based payment systems.

Visa and Mastercard currently account for the majority of electronic payments across the eurozone, prompting Brussels to pursue a sovereign European alternative.

The digital euro is expected to be launched by 2029 as a digital form of central bank money designed to strengthen Europe’s strategic autonomy in the payments sector.