Economists Urge MEPs to Support Digital Euro in Open Letter

Seventy economists and policy experts have called on Members of the European Parliament (MEPs) to back a digital euro that clearly serves the public interest, arguing that it is crucial for Europe’s monetary sovereignty and for guaranteeing access to central bank money in an increasingly cash‑light economy. 

The open letter, published on Sunday and titled “The Digital Euro: Let the public interest prevail!” warns that without a strong public option, private stablecoins and foreign payment giants could gain even greater influence over Europe’s digital payments.

​The signatories, including former executive board director for the European Union at the European Bank for Reconstruction and Development (EBRD), José Leandro, and French economist Thomas Piketty, describe the proposed central bank digital currency (CBDC) as a public good.

They argue for a public, euro area‑wide digital means of payment, issued by the Eurosystem and free of charge for basic services, that would complement rather than replace cash.

They caution that if the EU hesitates or waters down the project, European citizens and merchants risk becoming more dependent on private, mostly non‑European card schemes and big technology payment platforms, which could weaken the resilience and autonomy of Europe’s payment system in times of stress.

Related: ECB eyes onchain settlements next year as lawmakers weigh digital euro privacy

ECB’s preparation phase and design choices

Their intervention comes while the European Central Bank (ECB) is in the preparation phase of the digital euro project, working on a rulebook, technical architecture, and offline functionality ahead of any final decision on issuance. 

The ECB describes the digital euro’s design as a public, pan‑European payment solution that offers cash‑like access to central bank money, including offline payments, while preserving financial stability through tools such as holding limits and tiered remuneration.

In a Jan. 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 in the retail payment system.

​According to the ECB, a digital euro could support use cases such as conditional payments and offline functionality, while respecting anti‑money laundering (AML) and privacy requirements.

Related: Stablecoin risks seen as minimal in Europe amid low adoption and MiCA: ECB

Concerns and privacy demands from consumers

At the same time, the project has faced skepticism from commercial banks, and some policymakers worried about potential disintermediation of deposits, operational costs, and uncertain user uptake. Consumer surveys also indicate that strong privacy protections are a key condition for public acceptance of a digital euro.

Analysts at BNP Paribas also highlighted that the digital euro’s benefits must be weighed against possible funding and profitability pressures for banks, depending on where holding limits and remuneration are set. 

In response to Cointelegraph’s questions, the ECB declined to comment directly on the economists’ letter but pointed to several recent studies.

One technical annex analyses the financial stability impact of a digital euro with individual holding limits set at 3,000 euros, concluding that no financial stability concerns arise even in an adverse scenario.

Another report assesses how a digital euro would fit into the existing payment ecosystem, while separate papers examine privacy safeguards and the investment costs for the euro area banking sector.