A group of seventy European economists has urged lawmakers in the European Union to prioritize the launch of a publicly issued digital euro rather than relying on private stablecoins, warning that weak design choices could leave Europe dependent on foreign payment systems. In an open letter published by the Sustainable Finance Lab at Utrecht University, the academics argued that Europe’s payment infrastructure is increasingly controlled by non European providers, exposing the region to geopolitical and commercial risks. They pointed to the growing influence of dollar backed stablecoins and international card networks as evidence that delays or compromises around the digital euro could erode monetary sovereignty. According to the signatories, a publicly issued digital currency should serve as a core piece of European financial infrastructure, ensuring resilience, privacy, and accessibility in an environment where digital payments are becoming the default.
The economists outlined several design principles they see as essential for the digital euro to succeed. They argued it must function as public digital money accessible to all residents, support financial inclusion, and offer strong privacy protections comparable to cash for everyday use. Just as important, they said, is a sufficiently high and gradually increasing holding limit that would allow the digital euro to act as a meaningful store of value rather than a purely symbolic payment tool. Without these features, the group warned, businesses and consumers may continue to favor private alternatives, undermining the project’s purpose. The letter framed the debate as a choice between asserting democratic control over money in the digital age or ceding influence to foreign corporations and non European currencies.
The call comes as political and technical preparations around the digital euro advance. Officials at the European Central Bank have emphasized the strategic role of a digital euro alongside broader efforts to strengthen Europe’s financial architecture. ECB leaders have said groundwork on the technical side is largely complete, with legislative approval now the key hurdle. If lawmakers move forward, pilot transactions could begin later in the decade, with issuance possible before 2030. At the same time, policymakers continue to stress that a digital euro would complement physical cash and coexist with regulated private stablecoins under existing EU rules. Still, surveys suggest public demand remains uncertain, making design choices and political clarity critical as Europe decides how to position its money system in a world increasingly shaped by digital payments.
