23 Oct 2023

DIGITALEUROPE position on the Digital Euro

The draft Digital Euro proposal provides an important first step towards developing the basis of a public-private partnership to deliver public money for a new digital age. If well designed, the Digital Euro has the potential to drive further innovation, competition, and choice for consumers in Europe, and to strengthen the single market. To achieve success, the Digital Euro must deliver clear benefits to end users and maintain financial stability.

To meet this goal, the EU must: 

  • Articulate a clear compelling customer value proposition by defining a set of key desired end-user benefits which should be mapped to specified design choices. Benefit to consumers is an important and necessary condition to being widely used and successful (today, customers already have access to competitive digital payment solutions, with new ones being developed frequently).
  • Conduct a cost-benefit analysis on the Digital Euro relative to alternative approaches that aim to modernise the payment system. The Digital Euro should contribute to making payments, and ultimately Europe, more competitive.
  • Conduct an evidence-based study of the potential risks to financial stability. Potential negative impacts on financial stability and banks’ capacity to fund the economy, and therefore economic growth, should be avoided by design.
  • Acknowledge the technical and operational complexities of a Digital Euro roll-out and allow for a two-phased approach to its implementation.
    We understand that considerations such as monetary sovereignty and open strategic autonomy provide the rationale behind the EU exploring the potential launch of a digital euro. For a successful roll-out, policymakers should introduce guidelines and institutional safeguards within this project, all while indeed preserving central banking independence in Europe.

We understand that considerations such as monetary sovereignty and open strategic autonomy provide the rationale behind the EU exploring the potential launch of a digital euro. For a successful roll-out, policymakers should introduce guidelines and institutional safeguards within this project, all while indeed preserving central banking independence in Europe.

 

Download the full position paper
For further information, please contact
Vincenzo Renda
Director for Single Market & Digital Competitiveness
Laura Chaney
Manager for Digital Finance Policy
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Our resources on ****
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DIGITALEUROPE’s response to the Joint European Supervisory Authorities’ public consultation on the second batch of policy mandates under DORA
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Elevating EU innovation through strategic investments and collaboration
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DIGITALEUROPE Executive Council for Health’s recommendations for EU digital health policy (2024-29)
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