Seventy economists and policy experts urge MEPs to support a digital euro, stating it’s vital for Europe’s monetary sovereignty and access to central bank money in a cash-light economy. They advocate for a euro area-wide digital payment issued by the Eurosystem, free for basic services, to complement cash, not replace it.

The European Central Bank (ECB) is in the preparation phase for the digital euro project, working on rules, technical architecture, and offline functionality. The digital euro aims to provide cash-like access to central bank money, including offline payments, balancing innovation, privacy, and banks’ role as intermediaries.

Consumer surveys indicate strong privacy protections are crucial for public acceptance of a digital euro. Analysts highlight benefits of the digital euro must outweigh concerns like funding and profitability pressures for banks. The ECB declined to comment on economists’ letter but referenced studies analyzing financial stability, payment ecosystem fit, privacy safeguards, and investment costs.

Read more at Cointelegraph: Economists Urge MEPs to Support Digital Euro in Open Letter