Seventy economists urge EU to back public-interest digital euro
Seventy economists and policy experts have urged members of the European Parliament to endorse a public digital euro, saying it is essential to safeguard Europe’s monetary sovereignty and maintain access to central bank money as cash usage declines.
In an open letter published on Sunday titled “The Digital Euro: Let the public interest prevail!,” the signatories warned that, in the absence of a robust public option, private stablecoins and non‑European payment providers could expand their influence over digital payments in the region. The group — which includes former European Bank for Reconstruction and Development vice president José Leandro and French economist Thomas Piketty — described a central bank digital currency as a public good.
The letter advocates for a euro area‑wide digital means of payment issued by the Eurosystem, with basic services offered free of charge, that complements rather than replaces cash. It cautions that delaying or diluting the project could increase reliance on private, largely non‑European card networks and large technology platforms, potentially undermining the resilience and autonomy of Europe’s payment system during periods of stress.
ECB preparation and design choices
The intervention comes as the European Central Bank is in the preparation phase of the digital euro initiative, developing a rulebook, technical architecture and offline capabilities ahead of any final issuance decision. The ECB has outlined a design that would provide a public, pan‑European payment solution offering cash‑like access to central bank money, including offline use, while supporting financial stability through measures such as holding limits and tiered remuneration.
In a speech on Friday, ECB Executive Board Member Philip Lane said the project seeks to balance innovation and privacy with the ongoing role of banks as intermediaries in retail payments.
According to the ECB, a digital euro could enable functions such as conditional payments and offline transactions, while complying with anti‑money laundering and privacy requirements.
Stakeholder concerns and privacy expectations
The initiative has faced scrutiny from commercial banks and some policymakers concerned about potential deposit disintermediation, operational costs and uncertain user adoption. Consumer surveys indicate that strong privacy safeguards are a decisive factor for public acceptance of a digital euro.
Analysts at BNP Paribas have also noted that the benefits of a digital euro must be weighed against possible funding and profitability pressures for banks, depending on where holding limits and remuneration are set. This consideration is expounded further in a BNP Paribas research article.
The ECB declined to comment directly on the letter and referred to several recent studies. One technical annex examines the financial stability impact of a digital euro with individual holding limits of 3,000 euros and concludes that no financial stability concerns arise even under an adverse scenario. Additional reports analyze how a digital euro would integrate with the current payment ecosystem, detail privacy safeguards, and assess investment costs for the euro area banking sector.
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