EU Needs Permanent Digital Euro, Says Deutsche Börse CEO

Stephan Leithner, CEO of Deutsche Börse, has called for the European Union to adopt a permanent central bank digital currency (CBDC), emphasizing its crucial role in enhancing the region's financial stability, efficiency, and autonomy. In a policy paper released on February 15, 2025, Leithner outlined a comprehensive 10-step strategy aimed at transforming the EU’s Capital Markets Union (CMU) into a Savings and Investments Union (SIU), with a digital euro serving as its centerpiece.

A Digital Euro at the Heart of EU Financial Reforms

Leithner argued that the creation of a permanent digital euro would be central to strengthening the EU's financial infrastructure and autonomy, positioning it as a key asset in the region's broader digital agenda. He proposed that the European Central Bank (ECB) and national central banks work collaboratively to ensure that the digital euro integrates smoothly into the EU’s existing capital markets ecosystem.

“The ECB’s joint approach with national central banks around a central bank digital currency will facilitate exploration of the most suitable solutions and truly enrich the EU’s capital markets ecosystem,” Leithner stated. He emphasized that the digital euro should be part of a comprehensive strategy to enhance the efficiency and security of financial transactions within the region.

Improving Efficiency and Autonomy

Leithner further highlighted that the introduction of a CBDC would significantly improve the efficiency of financial transactions across the EU. It would also contribute to enhancing the EU's economic autonomy by reducing reliance on the US dollar and global payment systems. The digital euro could serve as an alternative to the dollar, providing a stronger, more stable means of exchange within the region.

The Deutsche Börse CEO also pointed out the need for technological advancements in "cash on ledger" and "programmable payments" systems, which would ensure the seamless integration of the digital euro with existing payment systems and services.

Strengthening the EU’s Global Competitiveness

Leithner's policy paper also advocates for the development of a comprehensive regulatory framework that incorporates key EU regulations such as the Markets in Crypto-Assets Regulation (MiCA), the AI Act, and the Digital Operational Resilience Act (DORA). According to Leithner, these combined efforts would enhance the competitiveness of the euro on the global stage, ensuring it remains a strong and relevant currency in an increasingly digital financial landscape.

While the paper strongly supports the idea of a digital euro, it does not delve into the specifics of its technical implementation or the regulatory framework that would be required to support it.

The Role of European Institutions

For the digital euro to be successful, Leithner stresses that cooperation between European institutions will be essential. This includes the ECB working alongside national central banks to ensure that the CBDC is effectively integrated into the broader EU financial system. Additionally, developing new technological solutions for programmable payments will be key to ensuring that the digital euro is both accessible and efficient for users across the EU.

Leithner’s call for a permanent digital euro aligns with broader efforts in Europe to innovate and modernize the region's financial systems. By creating a digital currency that is directly backed by the central bank, the EU could enhance its financial sovereignty, provide greater stability to its markets, and reduce dependence on external currencies like the US dollar.

A Competitive Edge for the Euro

Ultimately, Leithner sees the digital euro as a critical tool for driving innovation within the EU, positioning the region to better compete in the global financial market. The digital euro, alongside other key regulatory developments, could help the EU become a leader in digital finance, attracting investment and driving economic growth in the process.

As Europe continues to explore and develop its digital currency options, the permanent adoption of a digital euro could be an essential step in ensuring the EU's long-term financial stability and global competitiveness.