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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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The leader of the European Parliament’s digital euro resigned to dispel suspicions that he was deliberately blocking the legislation.
Stefan Berger, who led the European Parliament’s digital euro efforts, clarified that he resigned to avoid suspicion that the German center-right was stalling this critical project, Politico reported Thursday. The initiative aims to establish a unified digital currency across the eurozone.
Berger said it’s time for someone outside Germany, free from suspicion of delaying talks, to take over.
Markus Ferber, a German and the center-right coordinator for economic files, is expected to choose Berger’s replacement within a week. One candidate under consideration is Fernando Navarrete Rojas, a former central banker from Spain, Politico said.
The digital euro project aims to create a virtual version of euro coins and banknotes, improving domestic payments in the eurozone while reducing reliance on foreign payment providers.
However, privacy remains a key concern, especially in Germany, where skepticism is highest among eurozone nations. Nearly half of Germany’s population struggles to imagine using the digital euro.
Small German Banks Raise Alarmed Over Digital Euro’s Potential to Trigger Bank Runs
Concerns are growing over the potential risks, particularly among smaller financial institutions.
Small German banks worry that the European Central Bank’s digital currency design could drain savings from accounts, weakening their funding. This concern is amplified by widespread public skepticism in Germany, where many prefer cash and distrust digital payment systems, often associating them with surveillance—a sentiment rooted in historical experiences with authoritarian regimes.
Berger pointed out that banks fear the digital euro could lead to sudden deposit withdrawals, potentially triggering destabilizing bank runs at smaller institutions. Once transferred, it’s no longer the bank’s money, Berger has said, adding that the average deposit at a small German bank is about €3,000.
Over time, Berger became more sympathetic to these concerns, eventually concluding that central bank control over digital infrastructure should be limited.
He told Politico that he focused on quality rather than rushing implementation, ensuring structural factors were thoroughly considered.
Stefan Berger Faced Criticism for Stalling Digital Euro Progress
Earlier this year, opposing MEPs voiced dissatisfaction with Berger’s handling of the digital euro project. They urged Parliament coordinators to ensure that Berger or any rapporteur would fully commit to advancing the project. They accused him of failing to schedule meetings, arguing that his approach undermined democratic processes.
Meanwhile, the ECB and the European Commission are pushing to speed up the legislative process. Ursula von der Leyen has tasked Economy Commissioner Valdis Dombrovskis with achieving quick progress on the matter.
Joachim Nagel, President of the Deutsche Bundesbank, earlier predicted the digital euro would launch between 2028 and 2029. He assured potential users that privacy would remain a top priority.
