A group of seventy European economists has urged European Union lawmakers to prioritize the launch of a publicly issued digital euro, warning that delays or weak design choices could leave Europe increasingly dependent on foreign payment systems and private dollar backed stablecoins. In an open letter released as the European Parliament moves toward finalizing legislation, the academics argued that Europe’s payment infrastructure has become overly reliant on non European providers, exposing households and businesses to external commercial and geopolitical risks. They noted that many euro area countries already depend almost entirely on international card networks for everyday transactions, while private digital currencies linked to the U.S. dollar continue to expand their reach. The economists cautioned that without a robust public alternative, Europe risks losing control over a core part of its monetary and payments system at a time when digital finance is reshaping how money is used and transferred.
The signatories emphasized that the success of a digital euro depends on clear design principles that place public interest above private sector influence. They called for the digital euro to serve as a backbone for a sovereign European payments network built on domestic providers and strong privacy protections. Accessibility was also highlighted as a priority, with the economists arguing that public digital money should be available to all residents and support financial inclusion rather than replicate existing barriers. A key concern raised was the proposed holding limits, which they said must be generous enough for the digital euro to function as a credible store of value. If businesses are allowed to opt out or limits remain too restrictive, the economists warned the project could become symbolic rather than transformative, failing to compete with private alternatives that already offer convenience and scale.
European Central Bank officials have echoed parts of this strategic argument in recent remarks, framing the digital euro as a response to structural shifts including digitalization and geopolitical fragmentation. Policymakers see the project as a way to ensure access to central bank money in digital form as cash usage declines and payment habits evolve. At the same time, the digital euro is being positioned alongside broader efforts to strengthen Europe’s financial architecture, including discussions around safe euro denominated assets and common debt issuance. Technical preparations are advancing, with the ECB moving into a readiness phase and signaling that pilot transactions could begin later in the decade if legislation is approved. Political negotiations remain ongoing, however, and public skepticism persists, with surveys showing limited perceived need for a new payment option. As lawmakers debate the final framework, the economists’ message is that the design choices made now will determine whether the digital euro becomes a meaningful pillar of European monetary sovereignty or a missed opportunity in a rapidly changing global payments landscape.
