Banking associations sharply criticize ECB’s plans for the digital euro
Banks fear state dominance, data risks and erosion of cash as ECB pushes ahead with digital euro plans
The European Central Bank’s plans to introduce a digital euro are facing growing resistance from Germany’s banking industry. Representatives of savings banks, cooperative banks and private banks warn that the current design could lead to excessive state control, competition distortions and a weakening of the traditional banking sector. While the associations emphasize that they support digital payments in principle, they demand greater involvement of private-sector players and stress that cash must remain fully protected and available.
Banks warn of loss of control and unfair competition
According to the critics, the ECB risks creating a state-run parallel payment infrastructure, competing directly with banks while simultaneously acting as regulator and market player. This dual role is “highly problematic,” industry representatives argue, calling for a clear separation of responsibilities. Instead, they want private-sector payment providers to remain central to operations, with the digital euro functioning merely as a means of payment, not as a standalone state payment system.
Bargeld, data protection and user benefit remain unresolved questions
Another major concern is the potential erosion of cash. Banking associations insist that cash remains essential for freedom of choice, privacy and crisis security. They also question how data protection and clear governance structures can be guaranteed if transactions are processed via a centrally managed platform.
The ECB, however, argues that the digital euro is intended to complement, not replace cash, while strengthening Europe’s digital payment sovereignty and reducing dependence on global payment corporations. Supporters view it as a logical step toward a modern and resilient financial infrastructure.
The debate highlights how far-reaching the implications of a digital euro could be — for banks, consumers and financial markets alike — and shows that many key political, legal and economic questions remain unresolved.
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