Digital euro development faces privacy concerns and intense financial lobbying

The European Central Bank (ECB) is advancing plans for a digital euro, intended to provide a more accessible and affordable payment alternative to major US card networks like Visa and Mastercard. A pilot project is expected to begin testing in 2027, involving approximately 36 financial and payment institutions, including Deutsche Bank and Revolut, with the goal of a functional alternative becoming available by 2029.

Unlike standard bank deposits, the digital euro would be a direct liability of the Eurosystem, similar to physical cash. Proponents suggest it could offer increased security and lower transaction fees, and that merchants would be legally required to accept it. However, concerns have been raised regarding privacy, with some experts noting that specific protocols for protecting user data have not yet been fully resolved.

Simultaneously, concerns regarding financial lobbying have emerged. Data indicates that the financial sector has held a dominant role in discussions with the European Commission and the European Parliament regarding the digital euro's regulation. For instance, out of 68 lobby meetings held by the Commission between January 2022 and June 2023, 58 involved financial lobbyists, while only one included civil society representatives.