Deutsche Börse CEO calls for EU digital euro to boost autonomy

Stephan Leithner, CEO of Deutsche Börse, advocated for significant financial reforms within the European Union. He emphasized the importance of introducing a central bank digital currency (CBDC), specifically a permanent digital euro, to fortify the region's financial independence.

In a policy paper released on February 15, Leithner proposed a comprehensive 10-step strategy aimed at evolving the EU's Capital Markets Union (CMU) into a Savings and Investments Union (SIU), placing a CBDC at the heart of this transformation.

Leithner considers the establishment of a CBDC to be a pivotal aspect of the EU's digital agenda and a vital part of its broader financial strategy. He discussed the potential of the digital euro to serve as a strategic asset, enhancing the EU's policy framework and its position as a leader in digital innovation. The Deutsche Börse CEO called for a collaborative effort between the European Central Bank (ECB) and national central banks to integrate the digital euro into the capital markets ecosystem effectively.

The CEO highlighted the necessity for technological advancements in "cash on ledger" or "programmable payments" systems. These developments would ensure a smooth integration of the EU's permanent CBDC with existing payment systems and services. Leithner expressed that a CBDC would not only streamline financial transactions but also bolster the EU's economic sovereignty.

Additionally, Leithner pointed out that by aligning key regulatory frameworks within the EU, such as the Markets in Crypto-Assets Regulation (MiCA), the AI Act, and the Digital Operational Resilience Act (DORA), the euro could gain a competitive advantage globally. He underscored the need to minimize the influence of the US dollar on Europe's financial landscape.

While the proposed digital euro is seen as an essential tool for enhancing the EU's financial stability, competitiveness, and innovation, Leithner's policy paper did not delve into specifics regarding the technical implementation or the regulatory framework required for its introduction.

In related news, Standard Chartered (OTC:SCBFF) announced in January its intention to create a new Luxembourg-based entity focused on crypto and digital asset custody services. According to Waqar Chaudry, Standard Chartered's head of digital assets, the bank's crypto services in the EU will initially cover Bitcoin and Ether, with plans to expand its offerings in 2025.

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