More than 60 economists have implored European Union lawmakers to support the digital euro project, cautioning that its failure would cause the eurozone to "lose control over its own currency" and deepen its reliance on American corporations.
"A robust public digital euro is not optional; it is a core pillar for safeguarding European sovereignty, stability, and resilience," stated the economists, including French scholar Thomas Piketty, in an open letter submitted to Members of the European Parliament ahead of a hearing on the topic next week.
The Council of the European Union has already endorsed the European Central Bank's plan to launch an electronic currency equivalent to cash functions by 2029. However, it remains uncertain whether the proposal will secure the necessary majority support from European Parliament members in a crucial vote later this year.
The 68 signatories of the open letter also include European academics such as French scholar Eric Monnet, German scholar Jan Pieter Krahnen, and London-based scholar Daniela Gabor. They argue that the region's excessive dependence on US digital payment services exposes it to "geopolitical coercion, interference from foreign commercial interests, and systemic risks beyond Europe's control."
The economists pointed out that 13 eurozone countries lack domestic digital payment options and rely entirely on "international card schemes" such as Visa, Mastercard, and PayPal.
Although not explicitly naming US President Trump, the open letter, sent to the European Parliament's 720 members on Friday, referenced "recent developments" that have made such risks "far from hypothetical."
"Europe will lose control over the most central element of our economy: our currency. A robust public digital euro is our only line of defense," they wrote in the letter.
European banks have been actively lobbying to scale back the digital euro project. In November last year, 14 of the region's largest banks—including Deutsche Bank, BNP Paribas, and ING—warned that a digital euro could undermine efforts by Europe's private sector to compete with US payment systems.
The German Banking Industry Committee, the German banking sector's top lobbying group, labeled the ECB's plans "overly complex" and "too costly," cautioning that the project offers "minimal tangible benefits for consumers."
Spanish conservative MEP Fernando Navarrete, who was appointed by the European Parliament to assess the digital euro project, has also advocated for significantly reducing the project's scale.
The 68 economists urged EU policymakers to "resist short-sighted financial lobbying."
The open letter was initiated by the Utrecht-based academic think tank Sustainable Finance Lab and the Dutch Triodos Bank—the latter being a sustainability-focused bank and a supporter of the ECB's plan.
Hans Stegeman, Chief Economist at Triodos Bank and one of the letter's signatories, suggested that opposition from other banks stems from fears of losing substantial retail customer deposits, which currently serve as a low-cost and stable funding source for banks.
Under the current proposal, each individual can hold up to €3,000 in their digital wallet. These funds would not be available to private banks as cash deposits.
"We aim to build a financial system that serves society, not one that forces society to serve the financial system," Stegeman added, stating that a public electronic payment system is a vital component of this vision.
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