Economists Urge MEPs to Support Digital Euro in Open Letter

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 guaranteeing access to central bank money in an increasingly cash‑light economy. 

The open letter, on Sunday and titled, “The Digital Euro: Let the public interest prevail!,” warned that without a strong public option, private and foreign payment giants may gain even greater influence over Europe’s digital payments.

The signatories, including former European Bank for Reconstruction and Development vice president José Leandro and French economist Thomas Piketty, describe the proposed c as a public good.

They argue for a public, euro area‑wide digital means of payment, issued by the Eurosystem and free of charge for basic services, that complements rather than replaces cash.

They caution that if the EU hesitates or waters down the project, European citizens and merchants risk becoming more dependent on private, mostly non‑European card schemes and , which could weaken the resilience and autonomy of Europe’s payment system in times of stress.

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ECB’s preparation phase and design choices

Their intervention comes as the European Central Bank (ECB) is in the 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 digital euro’s design 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 Friday , ECB Executive Board Member Philip Lane reiterated that the project aims to balance innovation, privacy and the continued role of banks as intermediaries in the retail payment system.

​According to the ECB, a digital euro could support use cases such as conditional payments and , while respecting and privacy requirements.

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Concerns and privacy demands from consumers

At the same time, the project has faced skepticism from commercial banks and some of deposits, operational costs and uncertain user uptake. Consumer indicate that strong privacy protections are a key condition for public acceptance of a digital euro.

Analysts at BNP Paribas also that the digital euro’s benefits must be weighed against possible funding and profitability pressures for banks, depending on where holding limits and remuneration are set. 

In response to Cointelegraph’s questions, the ECB declined to comment directly on the economists’ letter but pointed to several recent studies.

One technical analyses the financial stability impact of a digital euro with individual holding limits set at 3,000 euros, concluding that no financial stability concerns arise even in an adverse scenario.

Another assesses how a digital euro would fit into the existing payment ecosystem, while separate papers examine privacy and the investment for the euro area banking sector.

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