Economists Urge MEPs to Support Digital Euro in Open Letter

Seventy economists and policy experts, including Thomas Piketty, published an open letter urging Members of the European Parliament (MEPs) to support a digital euro that prioritizes the public interest. They argue that a strong public option, issued by the Eurosystem and free for basic services, is crucial for Europe’s monetary sovereignty and ensuring access to central bank money as the economy becomes increasingly cash-light. The signatories warn that hesitation could increase European dependence on private, often non-European, payment giants and card schemes, weakening payment system resilience. The European Central Bank (ECB) is currently in the preparation phase, developing the rulebook and architecture, aiming for a solution that balances innovation, privacy, and the role of commercial banks. While the ECB is exploring features like offline payments and holding limits to ensure financial stability, consumer acceptance hinges on strong privacy protections, a concern echoed by analysts who note potential profitability pressures for banks.

(Source：Cointelegraph)