EU Economists Warn Delays on Digital Euro Risk Stablecoin Dominance

Economists in the European Union are urging lawmakers and Members of the European Parliament (MEPs) to back a digital euro that serves the public interest.

This push comes as private stablecoins continue to gain ground in the EU market.

The economists emphasized that a digital euro is essential for maintaining Europe’s monetary sovereignty and making sure that citizens have guaranteed access to central bank money.

70 Economists Urge Lawmakers to Bring “Digital Euro”

On Jan. 11, 70 economists and policy experts published a letter titled “The Digital Euro: Let the public interest prevail!”

In their letter, the economists argued that a strong, publicly-backed digital euro is essential to counter the growing influence of private stablecoins and foreign payment giants.

They called for a publicly issued, euro area-wide digital payment system created by the Eurosystem and offered free for basic use.

According to the signatories, the digital euro should complement physical cash rather than replace it.

However, calls for a digital euro have been ongoing since early 2025, shortly after the Trump administration took office, with little progress made so far.

The signatories include José Leandro, a former executive board director for the European Union at the European Bank for Reconstruction and Development (EBRD), and French economist Thomas Piketty, who have commented on the proposed central bank digital currency (CBDC).

The economists have warned that if the EU hesitates or delays the project, it could increase Europe’s reliance on private, non-European card networks and major tech payment platforms.

They noted that such dependence could undermine the strategic autonomy of Europe’s payment system, especially during times of financial or geopolitical stress.

Back in December 2025, top European banks joined hands to push the euro-backed stablecoin in the market.

ECB Still in Preparation Phase for CBDC

The comments come as the European Central Bank (ECB) continues the preparation phase of its digital euro project.

The ECB is currently developing a rulebook, technical framework, and offline payment capabilities ahead of any final decision on whether to issue the currency.

In a speech on Jan. 9, ECB Executive Board member Philip Lane said the initiative is meant to strike a balance between innovation, user privacy, and regulatory safeguards.

The ECB has also noted that a digital euro could support features like conditional payments and offline transactions, while still complying with anti-money laundering and privacy rules.

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