According to Financial Times News, the European Central Bank’s plan to launch a digital euro by 2029 has hit strong opposition from 14 major banks including Deutsche Bank, BNP Paribas and ING. The banks warned that the digital currency could undermine private payment systems just as they’ve launched Wero, their own rival to US payment companies like Mastercard and Visa. Conservative MEP Fernando Navarrete is pushing for a significantly scaled-down version, arguing the digital euro should only replace physical cash rather than compete with online payments. The ECB’s governing council recently decided to prepare for issuing the first digital euros during 2029, with a pilot planned for 2027, but current laws only allow the ECB to issue physical cash, requiring EU government and parliamentary approval. Cash usage in stores dropped from 72% to 52% over the past five years, creating pressure for digital alternatives.
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The Banking Industry Fights Back
Here’s the thing – the banks aren’t just complaining. They’re actively building their own solution. Wero represents their attempt to create what they claim the market actually needs: a private sector alternative to Visa and Mastercard. And they’re not shy about their concerns. The German Banking Industry Committee called the current plans “too complex” and “too expensive,” warning of “little tangible benefit for consumers.”
But there’s a massive cost disagreement here. The banks commissioned PwC to study this, and they came back with a staggering €30 billion price tag for the financial sector. The ECB? They’re saying it’s more like €6 billion. That’s a huge gap, and it makes you wonder who’s really doing the math right.
The Political Battle Lines
Now, the political situation is fascinating. Navarrete wants to severely limit what the digital euro can do – basically just replacing physical cash for offline payments. No online functionality, no competing with private payment systems. He argues that if European private solutions fail, then maybe they can expand the digital euro’s capabilities.
But here’s the catch: social democrats, liberals and greens all support the digital euro, and even some members of his own conservative group are on board. So it’s not clear if his scaled-back vision will win out. The Eurozone’s 20 finance ministers have already backed the ECB’s plans and are pushing for quick legal changes.
What’s Really At Stake
Look, this isn’t just about another payment method. The ECB’s Piero Cipollone framed it as protecting “our freedom, autonomy and security” against the dominance of US payment providers. And they’re not wrong to be concerned – the rapid development of US-backed stablecoins could threaten the euro’s role entirely.
But there’s a deeper issue here. As one senior central bank official pointed out, “25 years after the euro’s launch, there is still no pan-European, competitive payments solution.” Even if Wero succeeds, ownership could change – remember Visa Europe used to be European before it was sold. So the question becomes: do we trust private companies to maintain European payment sovereignty, or does that require a public option?
The banks argue the digital euro duplicates their efforts without clear consumer benefit. But the ECB seems to be thinking longer-term about maintaining control over Europe’s monetary infrastructure. Basically, we’re watching a fundamental debate about who should control the future of money in Europe – and neither side seems willing to back down.
