Major European banking institutions, including at least 14 large banks through the European Payments Initiative (EPI), have called for the European Union to reconsider the design and launch strategy of the Digital Euro. In a strongly worded letter to EU policymakers, they argued that the current proposal might undermine existing European payment solutions rather than enhancing them.
Key concerns raised include that the Digital Euro does not add clear value for end-consumers, risks increasing the control of non-EU players like Apple Pay and PayPal, duplicates existing infrastructure such as Instant Payments, and is scheduled for launch only in 2029, which is deemed too late for Europe's immediate sovereignty needs. Instead, they advocate for support of European-built solutions like Wero, marking the first time EPI has openly positioned itself against the Digital Euro.
Simultaneously, Italy's banking sector has expressed strong support for the Digital Euro, viewing it as vital for digital sovereignty and reducing reliance on non-European payment providers and stablecoins. However, they have urged the European Central Bank (ECB) to spread out the 'very high' implementation costs over time to manage capital expenditures. Marco Elio Rottigni, General Manager of ABI, stated, 'We’re in favor of the digital euro because it embodies a concept of digital sovereignty. Costs for the project, however, are very high in the context of the capital expenditure banks must sustain, they could be spread over time.'
The ECB has progressed the Digital Euro project to its next phase after a two-year preparation period, with a pilot phase expected in 2027 and full launch in 2029, contingent on EU legislation adoption in 2026. Opposition persists from some French and German banks worried about deposit outflows to ECB wallets. European parliament member Fernando Navarrete has proposed a scaled-down version to safeguard private initiatives like Wero.
This debate is influenced by the rise of decentralized cryptocurrencies, with privacy-focused coins like Zcash experiencing price rallies amid CBDC discussions. The contrast between centralized digital currencies and the financial privacy offered by Bitcoin and Zcash underscores ongoing tensions, as global CBDC developments advance in China, the UK, Japan, Sweden, and Brazil.
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