ECB’s digital euro faces backlash from banks and EU lawmakers

The European Central Bank’s plan to introduce a digital euro by 2029 has sparked strong opposition from EU lawmakers and major European banks, including Deutsche Bank, BNP Paribas, and ING. Critics argue that the project could undermine private payment systems like Visa, Mastercard, and PayPal.

Source Financial Times

In response, 14 lenders have launched their own digital payment network, Wero, as a European alternative to U.S.-based platforms. They claim the ECB’s current proposal lacks clear benefits for consumers and overlaps with private-sector solutions.

The ECB insists that a digital euro is vital to preserve Europe’s “financial autonomy and security” amid the declining use of cash and the rise of U.S.-backed stablecoins. However, legal approval from EU governments and Parliament will be required before the rollout can move forward.