Issuance of Digital Euro Must Serve Public Interest

In an open letter initiated by the Sustainable Finance Lab think tank, 70 leading European economists and academics from various countries called on members of the European Parliament to resist pressure from financial sector lobbyists and ensure that the digital euro becomes a reliable and accessible means of payment focused on public interest for all EU residents.

The document highlights the risk that the European CBDC project could lose its public nature as negotiations on the legislative framework for the digital euro approach a critical stage and policymakers seek compromises. It also notes that in 13 eurozone countries, everyday cashless payments are effectively dependent on international card schemes, mostly American, thereby increasing the dependence of European citizens and businesses on external commercial entities and creating corresponding geopolitical risks.

The experts who signed the letter argue that the digital euro should provide a direct link between citizens and the European Central Bank, constituting “public money” in digital form alongside cash. In their view, the key features of the digital euro should include:

• the ability to be used for both online and offline transactions;
• privacy protection based on the principle of privacy by design;
• access for all EU citizens, including those without accounts at commercial banks.

The experts also call for sufficiently high holding limits for the digital euro so that it can become a meaningful store of value and promote financial inclusion, rather than remaining a niche product. They believe this would allow households and legal entities to have a reliable public alternative to private payment systems, supporting financial stability and encouraging innovation in the European financial sector.

The document further states that the digital euro should strengthen Europe’s strategic autonomy by reducing dependence on foreign payment systems and by providing European citizens and businesses with a secure, accessible, and highly transparent tool for everyday payments. This position directly aligns with the stance of the European Central Bank, which views the introduction of a CBDC as a strategic step to maintain control over monetary policy, financial system resilience, and monetary sovereignty.

The European CBDC project has been under development since 2020. In 2022, the first pilot tests were conducted to integrate the digital euro with the existing financial infrastructure. In 2023, regulators moved to a phase of in-depth testing of the digital asset and the development of technical standards and a regulatory framework. In 2024–2025, a draft regulation was prepared and technology providers were selected to implement the future digital euro. In 2026, legislation regulating the use of the digital euro is expected to be adopted, and pilot trials are set to begin in 2027. According to the ECB’s plans, the digital euro could become available for use within the eurozone as early as 2029.