Euro

The Digital Euro

Europe’s digital euro is no longer a theoretical debate. As key political decisions approach, the project is becoming a test case for how the EU understands digital sovereignty, competition, and the role of markets in the digital age.
This policy paper examines the digital euro as a strategic response to Europe’s dependence on non-European payment systems. It asks whether the initiative can strengthen Europe’s autonomy without undermining innovation, competition, and trust. By comparing the EU approach with payment models in the United States and China, the paper highlights the distinct choices Europe now faces.
Focusing on concrete design questions such as acceptance rules, holding limits, privacy, costs, and the role of private actors, the paper argues that sovereignty will not be achieved through control alone. A digital euro can only succeed if it is embedded in an open and competitive payment ecosystem.