A European Central Bank board member has said Europe must overcome its reliance on international payment providers - but that it is not the central bank's job to come to the rescue and crowd out private sector initiatives.

More than two-thirds of non-cash payments are made with overseas cards as most competing European providers tend to be focused domestically or regionally, Benoit Coeure told a conference. He said this put the euro zone at a competitive disadvantage.

"Europe is at risk of losing its economic edge," Coeure said. "Country-specific solutions lack the necessary size and scale, and national fragmentation has paralysed competition and stifled innovation on the pan-European level."

The ECB is now studying the option of introducing a digital currency, but this would have broader consequences for the banks. Coeure warned against the central bank crowding out private-sector players.