The digital euro: taking criticism seriously and putting it into perspective

Hardly any other European Central Bank project is currently causing as much discussion as the digital euro. For some, it is a long-overdue update to European payment systems, while for others it is an attack on cash, privacy and banking stability.

So what is true and what belongs in the realm of myths? In this blog post, we take a closer look at the ten most common criticisms and examine how much substance there really is behind them.

Criticism number 1: It's just programmable money

Hardly any other accusation comes up as often as this one: with the digital euro, governments could dictate to people what they are allowed to spend their money on. That sounds like a dystopian scenario, but it is factually incorrect.

The European Commission has made it clear in its draft legislation that the digital euro will not be programmable. It will remain a neutral means of payment. Only functions that we already know today, such as standing orders or scheduled payments, will be permitted. Any ‘earmarking’ of the money itself would be ruled out. So while the concern about ‘remote-controlled money’ is understandable, it does not stand up to scrutiny.

Criticism number 2: Cash will disappear with the CBDC

Many citizens are attached to cash and fear that the digital euro could gradually replace it. This is precisely why the EU is pursuing a dual strategy: the digital euro will complement cash, but not replace it.

In fact, parallel to the discussion about the digital euro, a separate legal act was presented that legally safeguards cash. So anyone who wants to pay in cash will still be able to do so in the future. Cash will not be undermined; on the contrary, its status will even be strengthened.

Criticism number 3: The transparent citizen becomes reality

Data protection is a particularly sensitive issue. Critics fear that in future, every transaction could be visible to the state.

The reality is different: card payments and wallets such as Apple Pay already leave many data traces, but with private providers. The digital euro is designed to offer privacy by design: data minimisation, clear separation of roles and, above all, an offline function that offers almost the same level of anonymity as cash. This creates even more privacy than many existing digital payment methods.

Criticism number 4: Banks lose their deposits – a threat to stability

Another recurring theme: if citizens shift large sums into digital euros, banks could lose their deposits.

The ECB is countering this risk with a simple but effective mechanism: holding limits. Amounts in the low thousands are planned. This keeps the digital euro attractive for everyday payments, but prevents it from being used as a savings account. Banks retain their role in lending, and financial stability remains protected.

In an emergency, the ECB can provide additional liquidity. Instead of exaggerating the risk, the motto here is: forewarned is forearmed.

Criticism number 5: It doesn't really add any value

Many people are asking: why do we need a digital euro at all when we already have cards, apps and wallets?

The added value does not lie in even faster payments, as there are already enough of those. It is about resilience and sovereignty. Today, Europe is heavily dependent on a few, predominantly non-European providers for its payment transactions. If one system fails or comes under geopolitical pressure, there are no alternatives.

The digital euro is a basic public service in the digital realm: it creates an additional, robust payment infrastructure that everyone can rely on in an emergency.

Criticism number 6: The ECB is becoming a competitor to banks

Some banks fear that the ECB will compete directly with them by offering its own money. But here, too, the division of labour remains in place.

The ECB provides the track, and banks and payment service providers run their trains on it. Wallets, customer interfaces, KYC processes and additional services will all remain the responsibility of the banks. In fact, new business areas will open up for them, from innovative wallet solutions to value-added services for businesses.

Criticism number 7: Negative interest rates through the back door

A persistent myth: the digital euro could make it easier to impose negative interest rates.

But that is not true either. The digital euro is designed to be a non-interest-bearing means of payment, just like cash. A blanket penalty interest rate policy via the CBDC would be politically unthinkable and extremely difficult to implement legally. And even if it were, as long as cash continues to exist in parallel, citizens could switch to it at any time.

Criticism number 8: Innovation will be stifled

Critics fear that a public system will slow down private innovation. But the opposite is more likely: the digital euro is not a competing app, but an infrastructure.

Precisely because it creates a reliable basis, it lowers barriers to entry for new providers. European initiatives such as the European Payments Initiative (EPI) could use it as a foundation instead of building their own basic rails. This creates more scope for innovation, not less.

Criticism number 9: The project is being imposed on citizens

Some refer to it as a ‘technocratic project’ without democratic legitimacy. But it is worth taking a look at the procedure here: the digital euro can only be introduced if Parliament and the Council agree. The ECB provides the technical basis, but the decision is politically and democratically legitimate.

This is not a backroom decision, but a legislative process with clear hurdles.

Criticism number 10: Nobody wants to use it

In surveys, many express scepticism, often due to uncertainty or a lack of information. One thing is clear: acceptance depends on usefulness, trust and user experience.

If the digital euro simply works, offline as well as online, and the costs are fairly distributed, it will find its place. No one has to use it, but those who want to have the option. This option could be particularly valuable in times of crisis.

Conclusion: Not a spectre, but an upgrade

The digital euro is not a saviour, but it is also not a Trojan horse. It is a well-thought-out addition to our existing system:

• It strengthens the resilience of payment transactions.
• It secures Europe's sovereignty in the digital age.
• It opens up space for innovation and competition.

The criticisms must be taken seriously, which is precisely why the ECB has built in many protective mechanisms: holding limits to prevent bank runs, privacy by design to prevent surveillance, a clear no to programmable money, and a guarantee for cash.

In the end, the conclusion remains: not acting would be riskier. After all, a Europe without a digital central bank currency would become even more dependent – and that is the real spectre.

What this means for banks and companies and how adesso can help

The discussion about the digital euro is not purely a topic for the future. Many institutions and companies already need to prepare for new regulatory requirements, infrastructure modernisation and the integration of innovative payment methods. This is the crucial point: The digital euro will not be introduced in isolation, but will interact with existing systems and processes.

This is precisely where adesso provides support:

• End-to-end payment transaction expertise: from interbank interfaces and bank processing to modern customer interfaces.
• Regulatory compliance: PSD2, Instant Payments Regulation, DORA and ISO 20022. Our teams help not only to meet requirements, but also to use them strategically.
• Modernisation & migration: from legacy systems to new target architectures, including design, architecture, testing and project management.
• Enabling innovation: whether instant payments, cross-border or, in the future, the digital euro. We create the technical and organisational conditions necessary for banks and companies to remain competitive.

Our project experience ranges from the introduction of Swift GPI to ISO 20022 migration and the replacement of entire payment infrastructures. We use this expertise to create real added value for the digital euro as well: stable processes, regulatory security and scope for innovation.