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More than sixty leading economists from universities and institutions across Europe are sounding the alarm. In an open letter addressed to the European Parliament, they warn that if the EU fails to implement a digital euro, it could lose control over a key pillar of its economy – money itself.

Foreign Dominance and Geopolitical Risks
The letter’s signatories – including renowned French economist Thomas Piketty and Professor Dirk Bezemer of the University of Groningen – emphasize that Europe's payment system is already heavily reliant on a handful of non-European companies. In 13 eurozone countries, everyday retail payments are dominated by international card networks, mostly American.
The letter highlights how access to payment systems can quickly become a geopolitical tool during crises. Without a strong digital euro, Europe’s dependency could deepen as private US-backed digital currencies expand across the continent. The only viable safeguard, economists argue, is a robust public digital euro issued by the European Central Bank (ECB).

Digital Euro: Conditions for Success
The economists call for a digital currency that:
🔹 Is available to all citizens, including those without commercial bank accounts

🔹 Functions both online and offline

🔹 Prioritizes privacy by design

🔹 Cannot be refused by merchants

🔹 Has sufficiently high holding limits to serve as a real store of value
If these conditions aren’t met, the economists warn, the project will collapse into a symbolic gesture with no real impact.

Banks Push Back – Lobbying Intensifies
However, the digital euro project faces strong resistance from major banks. Institutions such as Deutsche Bank, BNP Paribas, and ING have spoken out against it, fearing an outflow of cheap and stable retail deposits. The German banking association has also criticized the ECB’s proposal as too complex and costly, claiming it offers little benefit to consumers.
Hans Stegeman, chief economist at Triodos Bank and a key signatory, argues that banks’ opposition stems from fear of losing influence. “We want a financial system that serves society, not the other way around,” he said, emphasizing that a public digital currency is essential for a fairer and more sovereign payment infrastructure.

Europe’s Last Chance?
The letter urges the European Parliament, the Commission, and the Council to act decisively and turn the digital euro into the backbone of a sovereign European payment system. The economists warn that Europe may not get another chance to fix this.
The letter ends with a direct challenge to EU policymakers:

“In the digital age, will Europeans control their money – or will someone else control it for them?”

Notable signatories include:
Dirk Bezemer, Peter Blom, Arnoud Boot, Kristof Bosmans, Wouter Botzen, Rutger Claassen, Jézabel Couppey-Soubeyran, Paul De Grauwe, Panicos Demetriades, and Sandrine Dixson-Declève.

#digitaleuro , #ECB , #Geopolitics , #CBDC , #worldnews

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(citing PANews and ECB President Christine Lagarde), Bulgaria has officially joined the Eurozone, becoming the 21st member. That lifts the ECB Governing Council’s decision‑makers to 27. Bulgarian National Bank Governor Dimitar Radev framed the move as more than just a currency switch—it's deeper economic integration. The screenshot also notes Bulgaria sold a cache of confiscated Bitcoin in 2018 (about 213.5k BTC) for ~$3.5B, and that the current value of that BTC would now exceed Bulgaria’s public debt. Treat those BTC details with caution—historical reports have been contested before. ✅
Why this matters for markets and crypto
ECB dynamics: More euro area members = a slightly broader policy mix. The Governing Council uses a rotation system for votes, so adding one more governor marginally dilutes individual voting frequency but doesn’t overhaul policy overnight. 🏦Macro vibe: Euro adoption tends to anchor inflation expectations and can lower funding costs over time. If it steadies growth in Southeast Europe, risk appetite could get a mild tailwind. 📈Crypto rails: Bulgaria using the euro means tighter alignment with EU payments/AML standards and SEPA access—good for fiat on/off‑ramps and euro liquidity. Expect more seamless EUR deposits/withdrawals, better banking connectivity, and a nudge to EUR‑stablecoin usage under MiCA. 🔌💳The Bitcoin angle: If that 2018 sale happened as stated, there’s no overhang from a big sovereign stash today. The “what‑if” (holding 213k BTC) makes headlines, but it’s not a current supply risk. 🧊₿
What I’m watching next
Official ECB/BNB communications confirming timelines and any transition milestones (cash changeover, banking/SEPA readiness). 🗓️Local banks and fintechs switching on euro rails—and whether exchanges/payment providers expand EUR pairs for Bulgarian users. 🔄Any fresh clarity from Bulgarian authorities on the old BTC seizure narrative (it’s long been murky). 🔍
Bottom line
Macro: Neutral to slightly constructive for European risk assets as integration deepens.
Crypto: Operationally bullish for euro liquidity and compliance clarity; no immediate BTC supply shock.Trading takeaway: Don’t chase headlines—watch EUR funding conditions, ECB guidance, and real on‑ramp improvements in the region. 🧭
#Eurozone #ECB #Bulgaria #BTC #MiCA 🚀

European Central Bank (ECB) Governing Council member Yannis Stournaras has signaled a cautious approach to monetary policy, stating that further interest rate cuts are not warranted unless significant shifts in inflation or economic growth occur. Speaking on September 19, 2025, the Bank of Greece Governor emphasized that the Eurozone’s inflation is on track to approach the ECB’s 2% target by 2028, reflecting a “good balance” in the economic outlook. His remarks, reported by PANews, underscore the ECB’s commitment to stability amid global uncertainties, including U.S. policy shifts and geopolitical tensions, while maintaining a data-driven stance on future rate decisions.
A Measured Approach to Rate Cuts
Stournaras, a prominent voice in the ECB’s 26-member Governing Council, indicated that the central bank’s current policy stance, with key interest rates at 3.25% for the deposit facility, 3.40% for main refinancing operations, and 3.65% for the marginal lending facility, strikes an effective equilibrium. “Only a major shift in inflation or growth would justify more easing,” he stated, dismissing the need for immediate rate reductions despite recent downside risks. He described a potential additional quarter-point cut as “symbolic at best,” suggesting limited impact on market dynamics.
This cautious outlook follows the ECB’s decision to maintain borrowing costs at its recent meetings, reflecting confidence that price pressures are manageable. Stournaras projected an inflation trajectory of 1.7% in 2026, rising to 1.9% by 2027, and approaching 2% by 2028, aligning with the ECB’s medium-term target. This gradual convergence, he argued, supports the central bank’s strategy of holding rates steady unless significant economic disruptions emerge.
Navigating Global Uncertainties
Stournaras highlighted external factors, such as U.S. policy uncertainties under President Donald Trump’s second term, as potential risks to the Eurozone’s economic outlook. He noted that Trump’s proposed tariffs could lower growth and inflation if Europe avoids retaliation, but countermeasures might trigger a jump in prices, complicating ECB policy. “The best thing for us is to wait and reconsider our position once the new U.S. administration’s policies are clear,” he said, advocating for a wait-and-see approach to avoid premature adjustments.
Despite these uncertainties, Stournaras remains optimistic about the Eurozone’s economic resilience. Recent data showing inflation at 1.8% in August 2025, below the 2% target for the first time since 2021, supports his view that the ECB is nearing its goal of price stability. However, he cautioned that statistical base effects, such as fading energy price declines, could temporarily push inflation higher in late 2025, necessitating vigilance.
Balancing Growth and Inflation
Stournaras’ comments reflect the ECB’s delicate balancing act between fostering economic growth and controlling inflation. The Eurozone economy has shown signs of weakness, with confidence indicators described as “just between life and death” and growth lower than anticipated. Stournaras previously supported two quarter-point rate cuts in 2024, citing softer-than-expected economic data, but now sees the current policy as sufficient unless conditions deteriorate significantly.
The ECB’s data-dependent approach, reinforced by Stournaras, aligns with its meeting-by-meeting strategy, with upcoming economic projections in December 2025 expected to guide future decisions. He emphasized that wage growth and other inflationary pressures remain key variables, but current trends suggest inflation will stay below 2% for several years, reducing the urgency for further easing.
Implications for Markets and Investors
Stournaras’ remarks temper expectations for aggressive rate cuts, impacting investor sentiment in a Eurozone grappling with a stronger euro and muted growth forecasts. The ECB’s prediction of 1.7% inflation in 2026 and 1.9% in 2027, coupled with Stournaras’ 2028 outlook, suggests a stable monetary policy environment, supporting the euro’s value. However, his acknowledgment of potential U.S.-driven disruptions introduces uncertainty, with markets pricing a 25% chance of a half-point cut in December 2025, down from earlier expectations.
The ECB’s steady policy stance contrasts with the Federal Reserve’s recent quarter-point rate cut on September 17, 2025, highlighting divergent monetary strategies. While the Fed responds to labor market weakness, the ECB’s focus on medium-term inflation stability reflects a more conservative approach, with Stournaras advocating gradualism to avoid market volatility.
Looking Ahead
As the ECB navigates a complex global environment, Stournaras’ outlook underscores its commitment to data-driven policy and economic stability. With inflation projected to approach 2% by 2028, the central bank appears well-positioned to maintain current rates unless significant disruptions emerge. Upcoming ECB meetings in October and December 2025 will be critical, with Stournaras’ cautious stance likely influencing discussions on balancing growth and inflation.
For investors and policymakers, Stournaras’ remarks signal a period of relative calm in Eurozone monetary policy, with flexibility to adapt to unforeseen challenges. As the ECB monitors global developments and domestic data, its steady hand will play a pivotal role in shaping the Eurozone’s economic trajectory through 2028 and beyond.

#ECB #interestrates #Inflation #MonetaryPolicy