The European Union needs a permanent digital euro to strengthen its financial autonomy and enhance efficiency, according to Stephan Leithner, CEO of Deutsche Börse.

In a policy paper published on February 15, he outlined a strategy to reform European capital markets, emphasizing that a central bank digital currency (CBDC) must play a key role in this transformation.

A Digital Euro as a Strategic Tool

Leithner sees the digital euro as a crucial factor in modernizing Europe’s financial infrastructure. He argues that the European Central Bank (ECB) and national central banks should collaborate to ensure the seamless integration of a digital euro into existing capital markets.

“Through joint efforts, the ECB and national central banks can develop innovative solutions and strengthen the European financial system,” Leithner stated.

He also stressed the need for technological advancements such as “Cash on Ledger” and programmable payments to enhance connectivity between the CBDC and current payment systems.

A digital euro could reduce the dominance of the US dollar in Europe. By harmonizing various regulatory frameworks, including Markets in Crypto-Assets Regulation (MiCA), the AI Act, and the Digital Operational Resilience Act (DORA), the euro could become more competitive on a global scale.

Furthermore, a digital euro would contribute to a more efficient and secure financial market, enabling faster and cheaper transactions. This would make European capital markets more attractive to investors and businesses.

The Growing Role of Digital Finance in the EU

Major financial institutions are increasingly focusing on digital finance. In January, Standard Chartered announced plans to establish a new cryptocurrency custody unit in Luxembourg. Initially, the bank will support Bitcoin (BTC) and Ethereum (ETH), with expectations to expand its offerings by 2025.

Digital currencies are playing an ever-growing role in the European financial sector. While private banks explore new financial services, Leithner advocates for a strong public initiative, with a digital euro at its core.

Although his policy paper does not yet provide a detailed technical roadmap, the message is clear:

The EU must modernize its financial infrastructure to remain competitive.

With this vision, Deutsche Börse contributes to the broader discussion on the future of digital money in Europe.

Whether the EU will officially adopt a permanent digital euro remains uncertain, as it depends on political and economic decisions. However, the pressure to take action is increasing.

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Madeline

I have been drawn to technology and science fiction since I was a child. Studying IT has drawn me to the world of cryptocurrencies, where I have been working since 2014. I have learned a lot since then. And I still have a lot to learn. What fascinates me most about them is that they connect so many worlds together and the possibility of free choice. Without limits.