TL;DR
- Seventy economists urge EU to prioritize a public digital euro.
- They warn of dependence on foreign payment systems and stablecoins.
- Pilot transactions could potentially begin in mid-2027.
Seventy European economists sign an open letter and press European Union lawmakers to prioritize a public digital euro over the expansion of dollar-backed private stablecoins. The document, released by Utrecht University’s Sustainable Finance Lab, warns about a concrete risk: weak design choices can leave Europe dependent on foreign payment systems and non-European issuers.
The message arrives as the European Parliament moves toward the final stage of legislation that will decide whether the project becomes a practical payment tool or remains a symbolic political exercise.
Thirteen euro area countries now rely entirely on international card networks for basic retail transactions. Such reliance exposes citizens, firms, and governments to geopolitical pressure, external commercial interests, and risks outside European control. While lawmakers deliberate, U.S.-backed private digital currencies expand their presence in everyday payments and online commerce. The letter argues that delay strengthens structural dependence.
Clear rules for a functional digital euro
The economists demand three essential features. First, the digital euro must operate as the backbone of a sovereign European payment infrastructure, supported by domestic providers and high privacy standards. Second, the instrument must function as public digital money available to all residents, with direct relevance for financial inclusion. Third, the design must include generous and gradually increasing holding limits that allow meaningful value storage. Without such elements, the authors state that the project fails in practice.
If companies can refuse acceptance or if holding caps remain too low, the digital euro loses everyday usefulness. The central question remains explicit: who controls European money in the digital era. The authors rely on operational facts rather than abstract theory.
Officials at the European Central Bank reinforce the case from an institutional angle. ECB Executive Board member Philip Lane explains in a January address to the Danish Economic Society how the digital euro fits within broader structural shifts, including digitalization and geopolitical tension. Lane presents the project as central bank money in digital form for retail payments, designed to adapt transaction systems to current conditions. He also addresses Europe’s shortage of safe euro-denominated assets, a constraint that limits the currency’s global role.
Lane describes concrete responses, including expanded common European bonds tied to shared public goods and a blue bond and red bond framework, where member states allocate tax revenue to jointly issued debt. The approach aims to reduce funding costs by widening the supply of assets that investors treat as secure.
Sovereignty, Not Suppression: How a Public Digital Euro Could Mature the Crypto Ecosystem
The push for a public digital euro stems from a deep concern over Europe’s monetary sovereignty. With thirteen euro area countries relying entirely on international card networks like Visa or Mastercard for everyday transactions—and dollar-backed stablecoins gaining ground in digital payments—Europe faces a tangible risk: losing control over its own financial infrastructure.
The seventy economists who signed the open letter aren’t proposing a technological gimmick, but a strategic defense against geopolitical pressures and external commercial dependencies. In this context, the digital euro isn’t an experiment—it’s a tool of autonomy.
