Economists issue joint letter warning: If the "digital euro" fails, the eurozone will "lose monetary control" and become dependent on American companies.

More than 60 well-known economists have sent a letter to the European Parliament, urging the defense of the "digital euro" project against banking industry lobbying pressure to safeguard Europe's monetary sovereignty. On January 11, according to the UK Financial Times, over 60 renowned economists made an urgent appeal to EU lawmakers, calling for full support of the "digital euro" project. They warned that if the project fails, the eurozone faces the risk of "losing control over its own currency" and becoming even more dependent on American payment giants. In an open letter to Members of the European Parliament (MEPs), signed by 68 individuals including French scholar Thomas Piketty, the signatories stated frankly that a strong public digital euro is not "optional," but the "fundamental safeguard" for European sovereignty, stability, and resilience. The letter, sent last Friday, aims to influence the European Parliament hearing scheduled for next week. Economists pointed out that at present, 13 eurozone countries lack domestic digital payment options and are completely reliant on "international card organizations" such as Visa, Mastercard, and PayPal. They warned that such overdependence exposes Europe to "geopolitical leverage, foreign commercial interests, and systemic risks beyond Europe's control." The economists wrote: "Europe will lose control over the most basic element of our economy—money. A robust public digital euro is our only line of defense." Signatories include scholars such as Eric Monnet from France, Jan Pieter Krahnen from Germany, and Daniela Gabor from London. They believe that the current state of dependence leaves Europe highly vulnerable to external geopolitical pressure and that establishing an independent public digital payment system is urgently needed. Although the European Council supports the European Central Bank (ECB)'s plan to launch digital cash in 2029, it remains unclear whether the proposal can gain majority support in the European Parliament's crucial vote later this year. Banks' Resistance and Interest Struggles The European banking sector is vigorously lobbying to scale down the project. In November last year, 14 major banks, including Deutsche Bank, BNP Paribas, and ING, warned that the digital euro could undermine private sector efforts to compete with American payment systems. German banking lobby groups directly criticized the European Central Bank's plan as "too complicated," "too expensive," and providing "almost no substantial benefit" to consumers. Fernando Navarrete, a Spanish conservative lawmaker appointed by the European Parliament to evaluate the digital euro, has also advocated for sharply scaling down the project, highlighting divisions at the legislative level. Hans Stegeman, chief economist at Triodos Bank and one of the initiators of the open letter supporting the ECB plan, stated bluntly that other banks are mainly concerned about losing retail customer deposits. Under the current plan, the cap for individual digital wallets is set at 3,000 euros, and this portion of funds would no longer count as cash deposits for commercial banks. Risk Warning and Disclaimer The market has risks; investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinion, viewpoint, or conclusion in this article is suitable for their specific circumstances. Investment based on this information is at your own risk.