- The call for the digital euro is getting louder. Now it also comes from academia, in an open letter signed by 70 economists from universities across the EU.
- They are calling on the EU to finally push ahead with the introduction of the digital euro. Their argument: Europe risks being left behind in the global financial architecture if it continues to hesitate.
The European Central Bank is already working on the conceptual and technical development of the digital euro. But at the political level there is a lack of initiative and speed.
For the crypto industry, the appeal of the 70 recognized experts is a clear signal that the framework conditions for digital assets in Europe must quickly and fundamentally change.
The digital euro as a financial policy project
In the open letter published by Sustainable Finance Lab at Utrecht University The scientists emphasize that the digital euro is much more than just a means of payment.
Rather, it is intended to strengthen Europe’s digital sovereignty, reduce dependence on US tech companies and provide an answer to China’s technological lead.
China has already developed a functioning CBDC system with the Digital Yuan and has been testing it for some time, but without announcing this to the rest of the world via social media at every possible opportunity.
The Digital Euro is also intended to serve as a counterweight to the private sector stablecoins that now dominate the majority of global crypto trading. The economists who signed the open letter see this as a threat to the European Central Bank’s monetary sovereignty.
A state-guaranteed, digital central bank money could create stability here and at the same time enable innovations – such as programmable payments, automated billing and innovative business models in the Web3 environment.
Why the EU must act now
For the crypto industry, the Digital Euro is perhaps the greatest opportunity of its existence. The Digital Euro would massively increase the acceptance of digital payments and thus generally bring blockchain applications into the mainstream.
On the other hand, an official European digital money would increase competition for stablecoin providers and force banks such as FinTechs to reorient themselves strategically. However, the project remains politically controversial.
Data protection concerns, lobbyist pressure from banks and fear of loss of control are slowing down the process. However, the appeal of the 70 economists shows that the time for waiting must finally be over.
The European Union is facing a turning point that will shape not only the future of the financial world, but the future of the entire European economy.
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