EU digital euro faces skepticism as lawmakers raise privacy and banking concerns. ECB aims for legislation in 2026 and rollout by 2029.
Author: Akshat Thakur
September 5, 2025 — The European Central Bank (ECB) renewed its push for a EU digital euro, framing it as a safeguard during crises. However, lawmakers raised doubts over privacy protections, risks to commercial banks, and the overall need for a central bank digital currency (CBDC).
ECB board member Piero Cipollone told the European Parliament’s economic committee that a EU digital euro would ensure citizens could always access a universal, free payment method. He framed the CBDC as a complement to cash and a fallback in case of cyberattacks or disruptions.
He stressed that non-EU providers dominate the bloc’s payment systems, reducing Europe’s ability to act independently in emergencies. Cipollone compared the initiative to U.S. efforts promoting dollar-backed stablecoins.
Despite the ECB’s pitch, several lawmakers pushed back. Critics warned that citizens might prefer ECB-backed accounts over commercial banks, destabilizing the private sector.
Privacy was another sticking point. Cipollone argued the ECB would “not know anything about the payer and the payee” and highlighted offline functionality designed to mirror cash’s privacy.
Pierre Pimpie, of the Patriots for Europe group, said the ECB’s control over account caps could erode trust: “Accounts in private banks could be emptied.” Cipollone responded that limits would be set using “rigorous analysis” and insisted the digital euro would not trigger capital flight during crises.
The ECB expects EU digital euro legislation to be finalized by mid-2026. Approval requires signoff from the European Parliament, European Commission, and European Council.
Once passed, the ECB would build and test infrastructure over three years, targeting a rollout by 2029 if no delays occur.
The EU digital euro debate reflects wider global trends. While countries like China advance with state-backed digital currencies, European lawmakers remain cautious. Concerns about privacy, commercial bank stability, and centralization have slowed progress, even as reliance on U.S. stablecoins grows.
The EU digital euro remains years away, with legislation unlikely before 2026 and rollout expected by 2029. While the ECB pitches it as essential for resilience, lawmakers’ skepticism highlights the tension between innovation, privacy, and financial stability in Europe’s CBDC journey.
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