The debate over Europe’s financial future is heating up. A group of 70 prominent economists and policy experts—including renowned figures like Thomas Piketty and former EBRD Vice President José Leandro—have issued a bold call to action. In an open letter titled “The Digital Euro: Let the public interest prevail!”, they are urging European Parliament members to prioritize a public digital currency over private alternatives.
As we move toward an increasingly “cash-light” society, these experts argue that a Central Bank Digital Currency (CBDC) isn’t just a tech upgrade—it’s a necessary shield for Europe’s economic independence.
The Battle for Europe’s Monetary Sovereignty
The core of the economists’ argument rests on monetary sovereignty. Currently, the digital payment landscape in Europe is dominated by non-European entities, specifically large US-based card schemes and Big Tech platforms. The signatories warn that relying solely on these private, foreign players makes the European economy vulnerable.
If the EU fails to provide a public digital option, the letter suggests that private stablecoins and foreign payment giants will fill the void. This could weaken the resilience of the Eurozone during times of financial stress. By introducing a digital euro issued directly by the Eurosystem, the EU can ensure that citizens always have access to “public money” that is safe, regulated, and free for basic use, much like physical cash is today.
The economists envision the digital euro as a public good. It isn’t meant to kill off paper bills but to complement them. This “pan-European” solution would allow merchants and citizens to transact across borders without being beholden to the fees and terms of private monopolies.
Balancing Privacy, Banking Stability, and Innovation
While the vision is ambitious, the European Central Bank (ECB) is currently navigating a complex “preparation phase.” This involves designing a rulebook that satisfies both technical requirements and public concerns. Two of the biggest hurdles are consumer privacy and the stability of commercial banks.
Banks have expressed concerns about “disintermediation”—the fear that if everyone moves their money into digital euro accounts held at the central bank, commercial banks will lose the deposits they need to fund loans. To prevent this, the ECB is proposing holding limits (potentially capped at 3,000 euros per person) and tiered remuneration systems to ensure the digital euro is used for payments rather than long-term savings.
Addressing Public Skepticism
Consumer surveys consistently show that privacy is the number one priority for potential users. People want to know that their digital transactions won’t result in “Big Brother” surveillance. In response, the ECB is researching offline functionality—similar to a digital wallet on a phone—that could allow for higher levels of privacy for small, everyday transactions.
The project also aims to support “conditional payments” (smart contracts) and improved AML (Anti-Money Laundering) protections. As ECB Executive Board Member Philip Lane recently noted, the goal is to balance cutting-edge innovation with the continued role of banks as vital intermediaries.
The 70 economists are clear: the risks of inaction are higher than the risks of implementation. By backing a public digital euro now, the EU has the chance to set a global standard for digital finance that puts the public interest first.
