Digital Euro: Fixing a Problem - or Creating One?
The discussions on a Digital Euro have arrived in the European Parliament, where MEP Fernando Navarrete holds the pen in the legislative process.
But what is the digital euro about?
The Digital Euro aims to strengthen Europe’s resilience and strategic autonomy in payments. A valid goal - but only if the design avoids unintended consequences.
Key risks include crowding out European market-based payment solutions, undermining banks’ funding and financing potential, as well as triggering unpredictable costs in the Eurozone.
A more proportionate approach is needed:
✔️ Prioritize an offline, cash-like, token-based digital euro
✔️ Introduce an online version only if market solutions fail
✔️ Set strict holding limits (max. EUR 500 for individuals, zero for corporates)
✔️ No Interest Remuneration
✔️ No Open Funding