"Leithner Calls for Digital Euro to Boost EU Financial Autonomy"

The CEO of German securities marketplace Deutsche Börse, Stephan Leithner, has called for financial reforms in the European Union, including the establishment of a permanent digital euro to bolster the region's financial autonomy. In a policy paper published on Feb. 15, Leithner outlined a 10-step strategy to transform the EU's Capital Markets Union (CMU) into a Savings and Investments Union (SIU), with a central bank digital currency (CBDC) at its core.

Leithner views the launch of a permanent CBDC as a key element of the EU's digital agenda and a crucial component of its financial strategy. He believes that the European Central Bank (ECB) and national central banks should collaborate to ensure that the digital euro enriches the region's capital markets ecosystem. Technological developments around "cash on ledger" or "programmable payments" systems are also crucial for seamless interconnection between the EU's permanent CBDC and existing payment systems and services.

According to Leithner, a CBDC would enhance efficiency in financial transactions and strengthen the EU's economic autonomy. He also suggests that combining key regulatory frameworks in the EU, such as Markets in Crypto-Assets Regulation (MiCA), the AI Act, and the Digital Operational Resilience Act (DORA), would enable the euro to gain a competitive edge at the global level.

While Leithner sees a permanent digital euro as a critical tool for enhancing the EU's financial stability, competitiveness, and innovation, the policy paper did not elaborate on the technical implementation or regulatory framework. In January, banking giant Standard Chartered announced plans to establish a new Luxembourg entity offering crypto and digital asset custody services, limited to Bitcoin (BTC) and Ether (ETH) initially, with more assets to be added later in 2025.