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In the letter, it is requested that all support be given to the creation of a digital euro. This digital currency would be issued by European Central Bank (ECB).
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Economists warn of the danger that, without a public digital money, private American companies such as Visa, Mastercard and PayPal could take over Europe’s payment system, or even US dollar stablecoins.
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There has been a strong pushback from the big European banks, such as Deutsche Bank, BNP Paribas and ING.
A group of 68 economists, including well-known figures like Thomas Piketty have published an open letter for the members of the European Parliament. It calls for full backing in creating a virtual euro, a currency issued by the European Central Bank.
The economists argue if the digital Euro is not adopted that Europe will lose control of its own monetary systems and become more dependent upon payment systems from other nations, especially the US.
The letter, sent before important parliamentary discussions and votes later in the year, presents the digital Euro as a strategic necessity, not an optional upgrade. It warns that if there is no public digital currency in Europe, private American companies such as Visa, Mastercard and PayPal could take over the payment system.
This would expose Europe to foreign political pressures, commercial agendas and financial risks that it cannot control.
According to current ECB plans the digital euro will be a public currency that works alongside physical cash and not replace it. The plan includes a limit on personal holdings, which is likely to be around EUR3,000, in order to keep the banking system stable.
Battle for Europe’s Digital Future
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Supporters of a digital euro claim that Europe does not have a single, independent digital payments network that covers all EU member states. At least 13 countries within the eurozone do not have their own digital payment systems. This forces their citizens and businesses relying on foreign payment cards or online services.
A digital euro could also offer a public alternative for private payment systems. This could lead to payments that are cheaper, faster and more stable, as they won’t be affected by decisions taken outside Europe.
The European Council approved in late December of last year a plan that would give the digital Euro and physical cash the legal status of official payment methods. This shows the institution’s support for the creation of a digital currency.
There is still a lot of opposition, especially from the big European banks like Deutsche Bank, BNP Paribas and ING. They claim the project is too expensive, too complex, and could harm private companies that are trying to create new payment options.
The European Parliament will vote on the digital payment infrastructure in Europe in 2026.
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