Catenaa, Monday, January 19, 2026-Seventy European economists have called on EU lawmakers to accelerate the rollout of a public digital euro, warning that reliance on private stablecoins and foreign payment systems could leave Europe exposed to geopolitical and financial risks.
The open letter, published by Utrecht University’s Sustainable Finance Lab, urges legislators to ensure the digital euro serves as a widely accessible, sovereign, and resilient form of money.
Signatories, including prominent economists and former central bank governors, stressed three critical features for success: the digital euro must underpin a European-controlled payment infrastructure, be accessible to all citizens to promote financial inclusion, and provide a credible store of value through generous and gradually rising holding limits.
Without these features, they warned, the currency could fail to gain traction or be overshadowed by dollar-backed stablecoins.
ECB Executive Board member Philip Lane highlighted the strategic importance of a digital euro in strengthening Europe’s financial architecture and addressing a shortage of safe euro-denominated assets.
Lane outlined potential solutions, including expanded common bonds for public goods and reforms to ring-fence tax revenues for jointly issued securities.
Technical preparations by the ECB are advancing, with pilot transactions possible by mid-2027 and the first issuance projected for 2029 if legislation passes.
The digital euro would operate alongside cash and comply with the Markets in Crypto-Assets Regulation, while offline transactions would allow device-to-device payments without internet access.
Despite official assurances, public surveys indicate limited awareness and demand for the new digital currency, leaving acceptance an open question.
