Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Seventy European economists have called on EU lawmakers to put the public interest ahead of business lobbyists when drafting… Digital euro warning that poor decisions could leave Europe dependent on foreign payment systems and dollar-backed stablecoins.
The message comes Open it published by the Sustainable Finance Lab at Utrecht University on Sunday, as the European Parliament prepares to finalize legislation that will determine whether digital money will be a more profitable alternative to private money or ” Symbolic stability “.
Academics say Europe’s payment systems have accidentally settled in non-European hands, with thirteen eurozone countries now relying on international cards for basic transactions.
The message said: This dependence on foreign payment providers (US) exposes European citizens, businesses and governments to political influence, foreign trade interests and risks that Europe cannot handle. “, adding that private digital currencies supported by the United States are increasing while Europe is discussing the issue.
A strong design is essential for the success of the digital euro
The signatories, including former central bankers and prominent economists such as Thomas Piketty and Paul de Grauwe, want three basic things.
Digital euro should act like ” The backbone of Europe’s independent and robust payment centers relies on local agents who adhere to the highest levels of confidentiality. “, and serve as” A public digital currency accessible to all Europeans, supporting financial inclusion “I give” A trusted value store with limited offers “.
Economists warn that the project will fail without these resources.
” If a large part of the European industry is excluded or allowed to exit, or if the margin remains too low for citizens to use it as a large store of value, the digital euro will fail to achieve its potential. “, they wrote.
The letter describes the dangers clearly, and asks if the Europeans ” Will they take control of their money in the digital age, or will we let others control us? “
The European Central Bank officials are putting the digital euro together and expanding the range of securities
Philip Lane, a member of the Executive Board of the European Central Bank, emphasized the importance of the technical issue in … The talk was held on January 9 In front of the Danish Economic Assembly, he presented the digital euro as part of efforts to boost economic growth in Europe.
Lane said that structural change, including global change, digital change and climate change, represent disruptions that are best dealt with by monetary union, as the digital euro provides ” Central bank money for people in digital form “It is the development of transaction systems.
Philip Lane, member of the Governing Council of the European Central Bank. Source: Center for Economic Policy Research (CEPR).
Lin also touched on the shortage of safe-haven assets in Europe, noting that German bonds alone cannot meet the global demand for euro-denominated securities.
They found possible solutions, including the expansion of common European cooperation on public procurement and reform” Blue Indus / Red Indus “, where member states allocate tax revenue to support the securities issued jointly.
Lin said: The distributed repayments will be the amount of the loan reductions resulting from the secured services provided by the amount of the distributed loans. “
Time marches on as the political debate continues
Technical preparations are nearing completion following the European Central Bank’s decision in October to move into the planning phase.
The President of the European Central Bank confirmed Christine Lagarde last month that ” We did our job, we finished the job “, holds the institutions of the European Union that are responsible for finalizing legislation.
He pointed Board member Piero Cipollone previously said that pilot activities could begin in 2027, with the first story possible in 2029 if lawmakers approve the plan next year.
And last month, The EU Council also approved its negotiations and developed a system that includes both online and offline payment methods.
The online version will allow device-to-device transactions without the need for an internet connection, provide privacy as a low-cost payment method and maintain AML compliance for wallet transactions.
ECB President Christine Lagarde said the digital euro is technically ready and awaiting legal approval.#ECB #DigitalEuro #EUStablecoinhttps://t.co/4cdYV6UdSJ
– Cryptonews.com (@cryptonews) December 19, 2025
Lagarde confirmed that the digital euro will complement the physical currency on the ground List of crypto asset markets in Europe describing stablecoins that comply with the Crypto Asset Market Regulations as ” Another way to pay “maybe” Consider it safe “.
Full acceptance remains uncertain, as I have shown A recent study by the European Central Bank Many Europeans see little need for the new payment system even after it has convinced them.
A note Seventy economists have urged the European Union to establish a digital euro instead of private stablecoins appeared for the first time Cryptonews Arabic.
