The European Central Bank (ECB) is pushing forward with plans for a digital euro, sparking criticism from lawmakers regarding privacy and the impact on commercial banks.
Reigniting the Digital Euro Debate in European Parliament
The ECB has renewed its efforts on the digital euro, which has faced pushback from EU lawmakers. ECB board member Piero Cipollone argued that a digital euro would provide Europeans with a free, widely accepted payment method that would remain functional during severe disruptions.
Digital Euro as a Safeguard in Crisis Situations
Cipollone emphasized that much of Europe’s payments infrastructure depends on non-EU providers, leaving the bloc vulnerable in crisis times. He presented the digital euro as a fallback option in the event of cyberattacks or network outages. He added, "The digital euro would complement cash, not replace it."
Lawmakers' Concerns About Privacy and Banking Risks
Several parliamentarians warned that a central bank-backed currency could undermine commercial banks if citizens turned to the ECB as the safer option. Privacy concerns dominated the discussion, with critics arguing that users' financial data could be at risk. Cipollone countered that the ECB would not track transactions, promising that an offline version of the digital euro would ensure anonymity.
The ECB anticipates that the legislation will be completed by mid-2026, with the possibility of launching the system by 2029. Furthermore, it has been confirmed that cash will continue to play an essential role alongside the increasing use of digital payments in Europe.
