ECR and EPP MEPS in the Committee on Economic and Monetary Affairs (ECON) have sent a letter to the European Central Bank (ECB) asking to postpone the introduction of the digital euro.

The ECB wants a digital currency to respond to existing cryptocurrencies and make Europe less dependent on foreign payment services. As a means of payment, the digital currency is meant to complement cash and regular digital payments.

However, after the hearings in the European Parliament, a number of committee members from the ECR and EPP groups noted that there are still too many uncertainties hindering an effective launch of the digital currency. Indeed, the European Central Bank is aiming to give the green light for the introduction of the digital currency this autumn, once the round of studies has been completed.

Coincidentally, on Wednesday, 20 September, the US House of Representatives approved a proposal to ban a digital dollar (CBDC).

On the initiative of ECR ECON coordinator Johan Van Overtveldt, members of the Committee sent a letter to the ECB’s Governing Council highlighting the major shortcomings and problems that still surround the digital currency.

Van Overtveldt stated: “So far, the ECB has not sufficiently investigated what the costs will be, who exactly will pay for it and what it will ultimately mean for the end user.”

The signatories also believe that the added value of the digital currency has not yet been demonstrated. Indeed, the payment benefits that such a currency could offer largely overlap with those already offered by the combination of cash and existing financial payment systems, which are constantly evolving. Moreover, the monetary and technological implications of the digital euro for the financial sector are currently very unclear.

A legislative package on the digital euro is currently before the European Parliament. Negotiations have not yet begun. It would therefore be uncivil to frustrate this process. The Committee members also urge the ECB to increase transparency and democratic control by the European Parliament and the European Council.

“The digital euro is a solution in search of a problem. Given all the uncertainties, we call for the introduction of a digital euro not to be rushed. Too little is currently known about its impact. The central bank cannot afford to launch a half-finished currency, let alone interfere in the legislative process,” Van Overtveldt concluded.

Annex: Letter