Seventy economists and policy experts have issued a public call to Members of the European Parliament (MEPs), urging them to support a digital euro designed to serve the public interest. In an open letter published on January 11, titled "The Digital Euro: Let the public interest prevail!", the signatories argue that a publicly-backed central bank digital currency (CBDC) is crucial for preserving Europe's monetary sovereignty and ensuring guaranteed access to central bank money in an increasingly cash-light economy.
The economists warn that without a strong public digital euro, private stablecoins and foreign payment giants could gain excessive influence over Europe's digital payments landscape. They caution that hesitation or a watered-down project could make European citizens and merchants more dependent on private, predominantly non-European card schemes and big tech payment platforms, potentially weakening the resilience and strategic autonomy of Europe's payment system during times of stress.
Prominent signatories include José Leandro, former executive board director for the European Union at the European Bank for Reconstruction and Development (EBRD), and renowned French economist Thomas Piketty. They describe the proposed CBDC as a public good and advocate for a public, euro area-wide digital payment means issued by the Eurosystem, which would be free for basic services and complement, not replace, physical cash.
This intervention comes as the European Central Bank (ECB) is in the preparation phase of the digital euro project. The ECB is currently developing a rulebook, technical architecture, and offline functionality ahead of a final issuance decision. In a January 9 speech, ECB Executive Board member Philip Lane reiterated that the project aims to balance innovation, privacy, and the continued role of banks as intermediaries.
The ECB's design envisions a public, pan-European payment solution offering cash-like access to central bank money, including offline payments. Financial stability would be preserved through tools like holding limits and tiered remuneration. The ECB has conducted studies, including one analyzing a holding limit of 3,000 euros per individual, concluding no financial stability concerns arise even in adverse scenarios.
Despite the push, the project faces skepticism from commercial banks and some policymakers concerned about deposit disintermediation, operational costs, and uncertain user uptake. Consumer surveys indicate that strong privacy protections are a key condition for public acceptance. Analysts at BNP Paribas have also highlighted the need to weigh the digital euro's benefits against potential funding and profitability pressures on banks.
