The European Central Bank has presented the digital euro as a symbol of financial autonomy and modernization. But, much like the Chinese model that seems to inspire ECB President Christine Lagarde, what is at stake is not just technology: it is the risk of turning a payment instrument into a mechanism of control over every citizen’s transactions. Across the Atlantic, the United States took the opposite path: it legalized stablecoins and banned a centralized digital dollar, strengthening freedom and competition instead of state control.
On September 26, the European Central Bank announced what had long been anticipated: it will conduct new experiments on what can be achieved with the digital euro.
This project, presented as an achievement of financial autonomy, has now been accelerated after the United States Congress approved the so-called GENIUS (“Guiding and Establishing National Innovation for U.S. Stablecoins”) Act, which authorizes stablecoins currencies pegged to stable assets, usually the dollar. At the same time, Congress also approved a prohibition on the Federal Reserve from creating an official digital dollar, ensuring that innovation remains decentralized and outside the direct control of the State.
In Brussels, the reaction was the opposite. The fear that these dollar-linked digital currencies could trigger a “digital dollarization” of the European economy served as justification to accelerate the digital euro. But instead of strengthening the diversity of existing solutions, the European Union is moving forward with a project directly controlled by the ECB. The narrative is one of “financial sovereignty,” but in practice it risks increasing citizens’ dependence on central power and undermines competition in the financial sector, especially when the Chinese model appears to serve as reference.
The ECB insists that the digital euro will be just another payment option, coexisting with cash. But President Lagarde has repeatedly praised the Chinese model, which looks very much like a declaration of intent. Even if it begins with promises of voluntarism, the reality is that models of this kind rarely remain optional for long. China’s case is illustrative: the digital yuan was presented as a complement to physical cash and a voluntary choice, but it quickly became a mass-use instrument, encouraged by the State and integrated into nearly all daily transactions.
In 2023, in cities such as Shanghai and Shenzhen, public salaries and subsidies were being paid through the digital yuan. After the 2022 Beijing Winter Olympics, its use expanded to such an extent that it became virtually impossible to avoid. In just five years, the digital yuan became unavoidable in many Chinese cities, with public wages, subsidies, and taxes processed exclusively this way.
By recording in real time all transactions through the People’s Bank of China, the government monitors in detail who buys, what, where, and when. This level of surveillance opens the door to direct conditioning of citizens’ behavior. Features such as “programmable money,” with an expiration date that forces people to spend within a certain timeframe instead of saving, have already been tested.
Added to this is the risk of social exclusion: those who do not join the system or lack access to the necessary digital tools are, in practice, shut out from a growing part of the economy. State incentives make adhesion inevitable if public salaries, subsidies, and even transport are processed via digital money; the space for private alternatives shrinks progressively.
In such a model, financial freedom ceases to exist: every payment ultimately depends on state approval.
Although official EU platforms highlight numerous advantages of the digital euro, such as lower cost payments, privacy protected by European law, and structures to prevent cyberattacks. One unavoidable question remains: Why is this system necessary at all? At present, the private sector offers multiple secure and reliable digital payment options.
Since the market already provides safe and efficient alternatives, the only possible incentive to develop this system lies in control through the centralization of power, at the expense of privacy while weakening the private banking system. In essence, the digital euro is not a technological advance, but a serious step backward in terms of freedom and privacy.
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