A group of seventy European economists has urged European Union lawmakers to accelerate the launch of a public digital euro, warning that delays and weak design choices could deepen Europe’s reliance on foreign payment systems and dollar backed stablecoins. In an open letter coordinated by Utrecht University’s Sustainable Finance Lab, the economists argued that Europe’s retail payments infrastructure is increasingly controlled by non European providers, exposing the region to geopolitical and commercial risks. They cautioned that private stablecoins, largely linked to the US dollar, are advancing more quickly than public alternatives while European institutions debate legislative details. The economists said a poorly implemented digital euro risks becoming a symbolic project rather than a functional alternative, leaving households and businesses dependent on external networks for everyday transactions. The letter framed the issue as a question of monetary sovereignty in the digital age, emphasizing the need for public digital money that serves citizens rather than private issuers.
The economists outlined key design principles they view as essential for the digital euro’s success. They called for strong privacy protections, broad acceptance across the euro area, and holding limits high enough to allow meaningful use as a store of value. Without these elements, they argued, the digital euro would struggle to compete with existing payment tools and private digital currencies. Several signatories warned that excluding companies or allowing merchants to refuse the digital euro would undermine its network effects. The group also highlighted Europe’s growing dependence on international card schemes, noting that many euro area countries rely entirely on non European providers for basic retail payments. In their view, a well designed digital euro could form the backbone of a sovereign European payments infrastructure while supporting financial inclusion and reducing systemic exposure to foreign controlled platforms.
Officials at the European Central Bank have positioned the digital euro as part of a broader effort to strengthen Europe’s financial architecture. ECB Executive Board members have linked the project to long term challenges such as digitalization and geopolitical fragmentation, arguing that a digital form of central bank money would complement cash as payment habits evolve. The ECB has entered a technical readiness phase, with political negotiations now determining the final legislative framework. Timelines discussed by policymakers suggest pilot transactions could begin later this decade if approval is secured. While public awareness and demand remain uncertain, supporters argue that the digital euro’s strategic value lies less in immediate popularity and more in preserving European autonomy as digital payments and stablecoins continue to expand globally.
