Seventy economists and policy experts called on Members of the European Parliament (MEPs) to back a digital euro that serves the public interest, arguing that it is crucial for Europe’s monetary sovereignty and for ensuring access to central bank money in an increasingly cash-scarce economy.
The open letter, published on Sunday and titled “The digital euro: Let the public interest prevail!”, warned that without a strong public option, private stablecoins and foreign payments giants may gain even greater influence over Europe’s digital payments.
The signatories, including former head of the European Union executive board of the European Bank for Reconstruction and Development (EBRD), José Leandro, and French economist Thomas Piketty, describe the proposed central bank digital currency (CBDC) as a public good.
They advocate for a public digital payment method for the entire euro area, issued by the Eurosystem and free for basic services, complementing cash rather than replacing it.
They warn that if the EU hesitates or dilutes the project, European citizens and merchants risk becoming more dependent on private, mostly non-European card systems and large payment technology platforms, which could weaken the resilience and autonomy of Europe’s payments system in times of stress.
Related: ECB mulls on-chain deals next year as lawmakers weigh digital euro privacy
ECB preparation phase and design options
His intervention comes as the European Central Bank (ECB) is in the preparation phase of the digital euro project, working on a rulebook, technical architecture and offline functionality ahead of any final decision on issuance.
The ECB describes the design of the digital euro as a public, pan-European payment solution that offers cash-like access to central bank money, including offline payments, while preserving financial stability through tools such as holding limits and tiered remuneration.
In a speech on Friday, Philip Lane, a member of the ECB’s Executive Board, reiterated that the project aims to balance innovation, privacy and the continued role of banks as intermediaries in the retail payments system.
According to the ECB, a digital euro could support use cases such as conditional payments and offline functionality, while respecting anti-money laundering (AML) and privacy requirements.
Related: Stablecoin risks considered minimal in Europe amid low adoption and MiCA: ECB
Consumer Privacy Concerns and Demands
At the same time, the project has faced skepticism from commercial banks and some authorities concerned about the possible disintermediation of deposits, operational costs and uncertain acceptance by users. Consumer surveys indicate that strong privacy protection is a key condition for public acceptance of a digital euro.
BNP Paribas analysts also highlighted that the benefits of the digital euro must be weighed against potential funding and profitability pressures for banks, depending on where holding limits and remuneration are set.
In response to questions from Cointelegraph, the ECB declined to comment directly on the economists’ letter, but pointed to several recent studies.
A technical annex analyzes the impact on financial stability of a digital euro with individual holding limits set at 3,000 euros, and concludes that no financial stability problems arise even in an adverse scenario.
Another report assesses how a digital euro would fit into the existing payments ecosystem, while other articles examine privacy safeguards and investment costs for the eurozone banking sector.
