European Commission Executive Vice President Valdis Dombrovskis has called for rapid progress on the digital euro legislation, arguing that delays could weaken Europe’s monetary sovereignty as other jurisdictions move ahead with digital public and private money initiatives. Speaking at the Maste event, Dombrovskis framed the digital euro as a strategic project for the entire euro area, linking it directly to Europe’s autonomy in payments and financial infrastructure.
His remarks underline the political dimension of the project at a time when the European Central Bank is advancing technical preparations while legislative negotiations continue in Brussels.
Dombrovskis stressed that the digital euro is not designed to replace cash, but to complement it. As payments increasingly shift to digital channels, he warned that Europe must ensure citizens and businesses retain access to central bank money in electronic form. Without it, reliance on non-European payment providers and foreign digital currencies could deepen.
He reiterated that the European Commission’s proposal provides a clear legal framework, balancing innovation with safeguards for financial stability and privacy. The draft regulation foresees mandatory acceptance for merchants across the euro area, with exemptions for the smallest businesses, and sets limits on holdings to mitigate risks of bank deposit outflows.
Strategic Autonomy and Global Competition
A central theme of Dombrovskis’ speech was strategic autonomy. He noted that a significant share of euro area card payments is currently processed by international schemes headquartered outside Europe. In times of geopolitical tension or market stress, this dependency could pose vulnerabilities.
The digital euro, in his view, would create a European-wide payment infrastructure anchored in public money, reinforcing resilience while supporting competition and innovation in the private sector. Banks and payment service providers would distribute the digital euro, preserving the existing two-tier monetary system.
He also pointed to the broader global context. Several major economies are exploring or piloting central bank digital currencies, while private stablecoin initiatives continue to expand. Europe, he argued, cannot afford to remain passive if it wants to shape global standards rather than adapt to them.
At the same time, Dombrovskis acknowledged concerns around privacy and financial stability. He said the Commission proposal ensures that the Eurosystem would not access personal transaction data, and that strict holding limits would prevent large-scale shifts of deposits away from commercial banks.
The message was ultimately political: the window for agreement is open, but not indefinitely. The Commission, the ECB and co-legislators must now align on final design features and legal safeguards if the digital euro is to move from preparation to potential issuance.
For euro area policymakers, the stakes go beyond payments technology. The outcome will signal whether Europe can collectively deliver a new form of public money fit for the digital age, while maintaining trust, stability and institutional balance across the monetary union.
Related: Dombrovskis Urges Faster Digital Euro to Reduce EU Dependence on US Payments