The European Parliament supports the ECB’s digital euro project, citing it as crucial for EU monetary sovereignty, reducing payment fragmentation, and strengthening the single market. Lawmakers emphasize the importance of an independent ECB to maintain price stability and market confidence amidst rising geopolitical tensions.

Former Belgian finance minister warns against political interference with central banks, citing historical examples of inflation and financial instability. He stresses the importance of central bank independence, especially in the current global context, likening monetary stability to essential utilities like water and electricity.

The resolution affirms the importance of physical cash alongside the digital euro in the euro area economy. Central bankers and economists view the digital euro as a public good and a geopolitical hedge, emphasizing the need for a retail payment system under European control to avoid reliance on foreign schemes.

ECB executive board member Piero Cipollone connects the digital euro to concerns about the weaponization of financial tools, advocating for a payment system built on European infrastructure. Economists and policy experts urge MEPs to prioritize the public interest to prevent private stablecoins and foreign payment giants from dominating Europe’s digital payments landscape.

Read more at Cointelegraph: EU Parliament Backs Digital Euro to Bolster Payments Sovereignty