Critics Warn Against the EU's Digital Currency

The European Central Bank (ECB) confirms that it is preparing for a possible launch of a digital euro in 2029, provided that the necessary EU legislation is adopted by 2026. According to the ECB, preparations will begin as early as 2027 with pilot projects and limited test transactions. This information is presented in a blog post published on December 9, signed by ECB board member Piero Cipollone and EU Commission Vice President Valdis Dombrovskis.

In the post, the ECB describes the digital euro as a necessary step as cash usage declines and payments increasingly go digital. According to the central bank, the digital euro will function as a digital complement to cash, be free to use, work both online and offline, and offer what the ECB describes as “cash-like” privacy. At the same time, the ECB asserts that cash will not be abolished and that citizens should continue to have the option to use physical payment methods.

However, the project is facing extensive criticism from legal experts, economists, and privacy advocates. Several analyses point out that a central bank digital currency would in practice make all transactions technically traceable, even if anonymity is promised in the regulations. Legal experts have warned that such a system risks creating the largest database ever built in Europe on citizens’ economic behavior.

The question of future control capabilities is also causing concern. Critics point out that even if the ECB today says the digital euro will not be “programmable,” there is no technical barrier to prevent future legislation from imposing restrictions on how money can be used, where it can be spent, or how long it remains valid. This risk is raised in several policy analyses on central bank digital currencies and in broader criticism of the digital euro project.

“Blueprint for Total Control”

The debate also touches on the shift in power that comes when money is issued, stored, and ultimately controlled by a single institution. Wikipedia summarizes the recurring criticism of the digital euro with concerns about increased centralization, diminished privacy, and the potential for political or administrative censorship of financial transactions.

The relatively large news account on Facebook, Mitch Summers, recently wrote that “this is not just a new payment option, it’s a blueprint for total control over your money and your freedom.”

According to this system, every euro will be issued, held, and can be revoked by a central authority, which means real-time control over what you can spend, where, and when. What is being sold as “strategic autonomy” could ultimately become “financial control.”

No more untraceable donations. No more hidden savings. No more private spending beyond the watchful eyes of bankers and bureaucrats.

The ECB rejects the criticism and emphasizes that the digital euro will be strictly regulated by law, that privacy will be protected through technical solutions, and that the project aims to strengthen Europe’s “strategic autonomy” in a payments market currently dominated by American and international actors. The central bank also stresses that the digital euro will not replace private payment solutions but will function as a public alternative.

The decisive battle, however, remains in the legislative process. In 2026, the European Parliament and member states are expected to decide on the regulations that will determine if and how the digital euro will become a reality. Critics fear that the decision risks having far-reaching consequences for economic freedom and privacy, far beyond what has so far been discussed publicly.