Digital euro key to Europe’s sovereignty amid global uncertainty

Digital euro key to Europe’s sovereignty amid global uncertainty

ECB Executive Director warns of rising geopolitical tensions and stresses strategic importance of digital euro.

At a time when global tensions and geopolitical games are on the rise, Europe is trying to strengthen its payment sovereignty. European Central Bank Executive Director Piero Cipollone points out that the digital euro is not only a modern tool, but also a key to maintaining control over its own finances.

Why is the digital euro important?

In an interview with the Spanish daily El País, Cipollone explained that digital money in digital form is intended to complement cash and address the increasingly fragmented payment landscape in Europe, especially with the development of e-commerce. Statistics show that cash transactions accounted for only 24% of daily payments in 2024, while in 2019 it was still 40%. This underlines the need to modernize and adapt the payment system to new conditions.

Geopolitics and Security

Cipollone stressed that rising global tensions and the “weaponization” of various instruments reinforce the need for a European payment system that is fully under European control. This system should be based on European technologies and infrastructure to reduce dependence on non-European providers.

Legal status and mandatory acceptance

According to Cipollone, the digital euro will be legal tender, meaning that any merchant accepting digital payments will have to accept the digital euro as well. This is to ensure that the digital currency becomes an integral part of the European payment environment.

Future and implications for Europe

He calls for the digital euro project not to be postponed. Cipollone rejects the view that it would be better to wait for private alternatives, and on the contrary argues that the introduction of a single European standard will increase the competitiveness of banks and fintechs and promote pan-European payments. He also underlines that the digital euro should be available both online and offline, as an offline-only solution would not solve the main problem – e-commerce.

A call from economists

This view was supported by an open letter from around 70 economists and politicians, who warned against further postponement of the project. According to them, a postponement could increase Europe’s dependence on non-European payment providers and threaten its financial sovereignty.

Conclusion

The digital euro thus appears not only as an innovative financial instrument, but also as a strategic line of defense for Europe in global geopolitical uncertainty. According to experts, the time for its implementation is urgent – ​​Europe must strengthen its financial sovereignty in order to maintain control over its own destiny.

*This is not an investment recommendation.

The Coingarage Team