digitaleuro

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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