{"id":870755,"date":"2025-09-05T21:12:51","date_gmt":"2025-09-06T02:12:51","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/09\/05\/eu-lawmakers-skeptical-of-digital-euro-as-ecb-renews-pitch\/"},"modified":"2025-09-05T21:12:51","modified_gmt":"2025-09-06T02:12:51","slug":"eu-lawmakers-skeptical-of-digital-euro-as-ecb-renews-pitch","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/09\/05\/eu-lawmakers-skeptical-of-digital-euro-as-ecb-renews-pitch\/","title":{"rendered":"EU lawmakers skeptical of digital euro as ECB renews pitch"},"content":{"rendered":"
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The European Central Bank (ECB) renewed its push to issue a digital euro, drawing pushback from EU lawmakers over privacy protections and potential risks to commercial banks.<\/p>\n

ECB board member Piero Cipollone told<\/a> a parliamentary economic committee on Thursday that a digital euro<\/a> \u201cwill ensure that all Europeans can pay at all times with a free, universally accepted digital means of payment, even in case of major disruptions.\u201d<\/p>\n

Some parliamentarians pushed back over concerns that the digital currency wouldn\u2019t protect user privacy, and that offering accounts backed by the central bank would undercut the private sector.<\/p>\n

Legislation for the central bank digital currency (CBDC<\/a>) has been before the European Parliament since 2023, and has faced delays amid political concerns and the 2024 elections.<\/p>\n

Digital euro seen as fallback in crisis<\/h2>\n

The ECB\u2019s Cipollone said the core of the bloc\u2019s digital payment systems<\/a> comes from non-EU providers, which could hinder the \u201ccapacity to act swiftly and independently \u2014 particularly in times of crisis.\u201d<\/p>\n

He pitched the digital euro as a fallback in cases of cyberattacks or network outages, and noted US efforts to promote dollar-backed stablecoins.<\/p>\n

Source: <\/em>ECB<\/em><\/a><\/figcaption><\/figure>\n

Cipollone said a digital euro would \u201ccomplement physical cash, which remains key for resilience and inclusion,\u201d but added that digital payments are now \u201cessential to daily life,\u201d which the government is expected to ensure.<\/p>\n

Lawmakers warn on privacy, risks to banks<\/h2>\n

Some lawmakers raised concerns about the privacy implications of a digital euro and the risk that EU citizens would choose to bank with the ECB over a commercial bank, as it would present a safer option.<\/p>\n

On privacy, Cipollone stressed that the central bank \u201cwill not know anything about the payer and the payee\u201d and that an offline solution for the digital currency \u201cwill be as good as cash in terms of preserving the privacy of the people.\u201d<\/p>\n

Pierre Pimpie of the right-wing Eurosceptic Patriots for Europe group said \u201caccounts in private banks could be emptied\u201d due to a digital euro and took issue with the ECB having control over setting a cap on user accounts, which he argued the bank could raise in a crisis.<\/p>\n

Cipollone said the central bank\u2019s cap would be set \u201con the basis of rigorous analysis\u201d and added that if corporations and wealthy individuals \u201csee a crisis in Europe, it will take them a second to buy a stablecoins denominated in a different currency.\u201d<\/p>\n

Related: <\/strong><\/em>ECB president calls to address risks from non-EU stablecoins<\/strong><\/em><\/a><\/p>\n

\u201cThe digital euro at that point would be the least of our problems,\u201d he added.<\/p>\n

ECB eyes 2026 law, rollout by 2029<\/h2>\n

Cipollone said the ECB was working under the assumption that digital euro legislation would be in place by the second quarter of 2026.<\/p>\n

Three EU institutions must greenlight the digital euro, including the parliament, the European Commission and the European Council. Talks among them could take months.<\/p>\n

After the law is passed, which could be as late as the middle of 2026, the ECB has to create and test the digital currency\u2019s infrastructure, which could take up to three years, putting a potential launch around 2029 if no delays occur.<\/p>\n

Magazine: <\/strong><\/em>Bitcoin is \u2018funny internet money\u2019 during a crisis: Tezos co-founder<\/strong><\/em><\/a><\/p>\n