Digital Euro Can Address Various Issues of Private Payment Services, Says ECB Official

The European Central Bank (ECB) has expressed strong support for the European Commission’s legislative proposals concerning the digital euro. In a speech delivered on September 4 to the European Parliament’s Committee on Economic and Monetary Affairs, ECB executive board member Fabio Panetta stated that these proposals position Europe as a leader among advanced economies in the development of central bank digital currencies (CBDCs). He emphasized that this initiative could prevent private entities from dominating the financial sector and the associated challenges that may arise.

The European Commission released its proposals to the public on June 28. Panetta, known for his skepticism toward cryptocurrencies, referred to the proposals for the euro CBDC as “a new paradigm for preserving monetary sovereignty.” He highlighted that this initiative would guarantee that Europeans retain access to a public payment option—whether in cash or digital form—amid the rise of private payment solutions. Panetta drew a parallel between private payment systems and private messaging, noting that users often feel compelled to adopt the most popular platforms.