Can you explain one more time why Triodos Bank is in favour of a digital euro?
‘The Financial Times featured our open letter this weekend. Its title “Digital euro ‘only defence’ against deepening US control of money” is an important point, but doesn’t tell the whole story. The benefits of a digital euro go far beyond simply reducing dependence on American players in the payment system. In this respect, we clearly differ from most other banks, which see a private European payment system primarily as a solution to American dominance in the current landscape. With the right design choices we believe the digital euro could guarantee universal access to safe and affordable payment options, promoting financial inclusion.’
‘Today, most digital money exists as private money, created and managed by commercial banks and payment providers rather than by public institutions. A digital euro can restore the disbalance where private financial institutions dominate money creation and payment systems, prioritising profit, while public interests such as financial stability, inclusivity, and sustainability have limited influence. With a digital euro people are given a truly risk-free option for storing their money, making depositing money in a bank a conscious choice rather than an automatic default. If properly organised, this can make the financial sector both more resilient and more diverse.’
One of the most often heard counter arguments is privacy. Critics fear their financial data will be misused in the hands of government. What do you have to say about that?
‘Of course the digital euro needs a sound and thorough governance to guarantee user privacy. It is crystal clear that personal data on digital euro holdings or transactions should not freely be used – by governments nor private actors – for other purposes. In specific limited cases, such as Anti-Money Laundering regulation, a balance might have to be struck between privacy for individuals on the one hand and public interests on the other hand. These types of privacy questions are by no means unique to the digital euro; banks are already legally required to perform Know Your Customer and Customer Due Diligence procedures. Even more so, payment data is now in the hands of private companies, where the same concerns about the right privacy governance is applicable. While we highly value privacy, we believe the digital euro can be designed to meet the highest privacy standards.’
Why did you support this letter and what impact do you hope it will have?
‘Our support for the public digital euro is part of our broader vision to transform the financial system, which we launched at the end of last year. This year is going to be decisive when it comes to the digital euro as Members of the European Parliament (MEPs) have to take their position. We observe that there are quite some misconceptions and would like to offer a counter-narrative. Especially as a bank we would like to emphasise that with the right design choices, a public digital euro would not necessarily threaten financial stability. And instead, provide an important step to restore the balance between private profits and public interests so the financial system better serves society.’
So what’s next?
‘The digital euro is heading for a crucial test in the first half of 2026, when the European parliament is expected to vote on it. We hope this could help MEPs in making a fair assessment in their decision-making process. Some of them are still sceptical, fuelled by the strong influence of the many lobbyists in Brussels. I’m confident the digital euro can become a reality, but until that crucial vote, we will be fighting an uphill battle.’