- The letter calls for full support in creating a digital euro, a digital currency that would be issued by the European Central Bank (ECB).
- Economists warn that without a public digital currency, Europe’s payment system could be taken over by private American companies like Visa, Mastercard, and PayPal, and potentially by US dollar stablecoins.
- There is a strong pushback, especially from big European banks like Deutsche Bank, BNP Paribas, and ING.
A group of 68 leading economists, featuring well-known figures such as Thomas Piketty, has published an open letter to European Parliament members. It calls for full support in creating a digital euro, a digital currency that would be issued by the European Central Bank (ECB).
The economists argue that if the digital euro is not adopted, Europe will lose control over its own monetary system and become more dependent on payment systems from other countries, particularly the US.
Sent before important parliamentary talks and votes later this year, the letter presents the digital euro as a vital strategic need, not just an optional upgrade. It warns that without a public digital currency, Europe’s payment system could be taken over by private American companies like Visa, Mastercard, and PayPal, and potentially by US dollar stablecoins.
This would leave Europe exposed to foreign political pressure, commercial agendas, and financial risks it can’t control.
Under current ECB plans, the digital euro would be a public digital currency, working alongside physical cash, not replacing it. To keep the banking system stable and stop people from moving all their money out of banks, the plan includes a personal holding limit, likely around €3,000 per person.
Battle for Europe’s Digital Future
Related: Digital Euro Moves to ‘Technical Readiness’ Phase, 2027 Pilot Planned
Supporters of the digital euro say that Europe currently has no single, independent digital payment network that covers all EU countries. For instance, at least 13 countries in the eurozone don’t have their own homegrown digital payment systems, forcing their citizens and businesses to rely on foreign payment cards and online services.
Also, a digital euro would offer a public alternative to private payment systems, which could lead to cheaper, faster, and more stable payments that aren’t as affected by decisions made outside Europe.
In late December last year, the European Council approved a plan to give the digital euro and physical cash the same legal status as official payment methods, showing the institution’s backing for creating a digital currency.
However, there is still strong pushback, especially from big European banks such as Deutsche Bank, BNP Paribas, and ING. They argue the project is too complicated, too costly, and could hurt private companies trying to create new payment solutions.
A decisive vote in the European Parliament is expected later in 2026, and the outcome will likely shape Europe’s digital payments infrastructure for years.
Related: Norges Bank Recommends the Norwegian Payment System Over a CBDC
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Source: https://coinedition.com/68-economists-warn-eu-will-lose-control-of-money-without-digital-euro/
