According to Financial Times News, the European Central Bank’s plan to launch a digital euro by 2029 is facing strong opposition from 14 major banks including Deutsche Bank, BNP Paribas and ING ahead of a key parliamentary hearing. The banks warn the digital currency could undermine private payment systems while offering “no clear added value for consumers” and have teamed up to create their own rival service called Wero to compete with US companies like Mastercard, Visa and PayPal. Conservative MEP Fernando Navarrete is pushing for a significantly scaled-down version that would only work offline like cash, not for online payments as the ECB envisions. The ECB’s governing council just decided to take steps toward issuing the first digital euros during 2029, with a pilot planned for 2027, but current laws only allow physical cash issuance. Cash usage in stores dropped from 72% to 52% over the past five years, creating pressure for digital alternatives.
Sponsored content — provided for informational and promotional purposes.
The Banking Industry Pushes Back
Here’s the thing – these banks aren’t just complaining. They’re actually building their own solution. Wero represents a direct private sector challenge to both the ECB’s digital euro and the dominant US payment providers. The banks argue that the digital euro essentially duplicates what private companies can already offer. And they’ve got some serious financial arguments – a PwC study they commissioned estimates the digital euro could cost the financial sector up to €30 billion, while the ECB puts the figure at under €6 billion. That’s a massive discrepancy.
The German Banking Industry Committee called current plans “too complex” and “too expensive” with “little tangible benefit for consumers.” But is this really about consumer benefits, or is it about protecting their turf? Banks make money from payment processing, and a central bank digital currency could potentially cut them out of that revenue stream. They’re basically saying “we can handle this ourselves, thanks very much.”
The Political Battle Lines
Fernando Navarrete’s position is fascinating. He wants the digital euro to be basically digital cash – usable offline like physical money but not for online transactions. His argument? That online functionality could create “a parallel payments ecosystem hindering private solutions from reaching pan-European scale.” He’s essentially saying let the private sector try first, and only launch the full digital euro if they fail.
But there’s a political split here. Social democrats, liberals and greens all support the digital euro, along with some members of Navarrete’s own conservative group. And the 20 Eurozone finance ministers just backed the ECB’s plans last month, urging quick legal changes. So this isn’t a clear partisan divide – it’s more about different visions for Europe‘s financial future.
The Real Stakes
Look, this isn’t just about technical payment systems. The ECB’s Piero Cipollone says it’s about protecting “our freedom, autonomy and security.” There’s genuine concern about Europe’s dependence on US payment providers and the rapid rise of US-backed stablecoins. One senior central bank official pointed out that “25 years after the euro’s launch, there is still no pan-European, competitive payments solution.”
That official also dropped a telling example – Visa Europe used to be European but was eventually sold. Basically, even if private European solutions succeed today, ownership could change tomorrow. The ECB seems to be thinking about permanent sovereignty, not just temporary competition. But the banks counter that they’re “closer than ever before” to creating a competitive system and deserve a chance to prove it.
What Happens Now?
So where does this leave us? The digital euro project needs EU governments and parliament to give the green light since current laws don’t allow digital token issuance. The legislation was proposed back in 2023, but now it’s facing serious headwinds. The banks have their Wero system, the ECB has its 2029 timeline, and lawmakers are divided.
This feels like a classic European regulatory battle – lots of competing interests, big money at stake, and fundamental questions about the role of public versus private solutions. The outcome will shape not just how Europeans pay for things, but who controls the plumbing of Europe’s digital economy for decades to come. One thing’s for sure – with Navarrete’s report now on the table and banks mobilizing, the path to a digital euro just got much more complicated.
