Economists Urge EU Lawmakers to Back a Public-Interest Digital Euro

Seventy economists and policy experts have urged Members of the European Parliament to support a digital euro that clearly serves the public interest, arguing it is essential for Europe’s monetary sovereignty and for ensuring access to central bank money as cash usage continues to decline.

Open Letter Warns of Rising Private and Foreign Influence

In an open letter published Sunday titled “The Digital Euro: Let the public interest prevail!”, the signatories warn that without a strong public digital payment option, private stablecoins and foreign payment giants could gain greater control over Europe’s digital payments landscape.

Digital Euro Framed as a Public Good

The letter’s authors, including former EBRD executive board director José Leandro and French economist Thomas Piketty, describe a central bank digital currency as a public good. They argue for a euro area-wide digital means of payment issued by the Eurosystem, free of charge for basic use, and designed to complement rather than replace cash.

Risks of Delay or Dilution Highlighted

The economists caution that hesitation or dilution of the project could leave European consumers and merchants increasingly dependent on private, largely non-European card networks and major technology payment platforms. Such dependence, they argue, could weaken the resilience and autonomy of Europe’s payment system during periods of financial stress.

ECB Advances Digital Euro Preparations

The appeal comes as the European Central Bank continues its preparation phase for the digital euro, developing a rulebook, technical architecture, and offline functionality ahead of any final issuance decision. The ECB positions the digital euro as a public, pan-European payment solution offering cash-like access to central bank money.

Design Focuses on Stability and Offline Use

According to the ECB, the digital euro would include offline payments and safeguards such as holding limits and tiered remuneration to preserve financial stability. In a Jan. 9 speech, ECB executive board member Philip Lane said the project aims to balance innovation, privacy, and the ongoing role of banks as intermediaries.

Privacy and Compliance Remain Central Goals

The ECB has emphasized that the digital euro could enable features such as conditional payments while still complying with anti-money laundering rules and privacy requirements, positioning it as a modern extension of public money rather than a radical overhaul.

Banks and Policymakers Voice Concerns

Despite progress, the project has faced skepticism from commercial banks and some policymakers, who worry about deposit disintermediation, operational costs, and uncertain consumer adoption. Surveys suggest that strong privacy guarantees will be critical for public acceptance.

Analysts Flag Potential Impact on Bank Profitability

BNP Paribas analysts have noted that the digital euro’s benefits must be weighed against potential funding and profitability pressures on banks, depending on how holding limits and remuneration levels are set.

ECB Responds With Research, Not Commentary

In response to questions about the economists’ letter, the ECB declined direct comment but pointed to recent studies. One technical analysis found no financial stability risks even in adverse scenarios when individual digital euro holdings are capped at 3,000 euros.

Studies Address Stability, Privacy, and Costs

Additional ECB reports examine how a digital euro would integrate into the existing payment ecosystem, outline proposed privacy safeguards, and assess the investment costs for the euro area banking sector, as debate over the project’s future continues.