EU Economists Urge Digital Euro to Counter Private Stablecoins

Economists in the European Union are advocating for a digital euro to ensure public interest and maintain monetary sovereignty as private stablecoins gain popularity.

Key Points

On January 11, 70 economists and policy experts published a letter titled “The Digital Euro: Let the public interest prevail!” urging the development of a publicly-backed digital euro.
The economists argue that a digital euro is crucial to counter the influence of private stablecoins and foreign payment companies.
A digital euro should be issued by the Eurosystem and available for basic use without cost, complementing rather than replacing physical cash.
Delay in implementing a digital euro could increase dependency on non-European card networks and tech platforms, threatening Europe's strategic payment autonomy.
The European Central Bank (ECB) is still preparing for the digital euro, developing a rulebook, technical framework, and offline payment capabilities.
The ECB aims to balance innovation, user privacy, and regulatory safeguards, with potential features like conditional payments and offline transactions.

The push for a digital euro continues amidst ongoing preparation by the ECB, which seeks to address both technological and regulatory aspects before any final decision is made.