Stephan Leithner, the head honcho at Deutsche Börse—you know, the big German stock market folks—is pushing for some big changes in European finance. He’s especially keen on getting a permanent digital euro up and running to give Europe more financial muscle.

In a policy paper that dropped on February 15th, Leithner laid out a 10-step plan to really shake up the EU’s Capital Markets Union (CMU). He wants to turn it into a Savings and Investments Union (SIU), and get this, he sees a digital euro from the central bank as absolutely key to it all.

For Leithner, launching a digital euro that’s here to stay isn’t just some techy side project. He views it as a vital part of Europe’s digital future and a cornerstone of its financial strategy.

Using the digital euro as a strategic asset

Getting into the nitty-gritty of EU policy and how Europe can be a leader in digital innovation, the Deutsche Börse CEO emphasized that the European Central Bank (ECB) and all the national banks need to team up. Their mission? To make sure this digital euro actually boosts Europe’s capital markets and makes them stronger.

“The way the ECB is working with national central banks on a central bank digital currency? That’s going to be super helpful for figuring out the best ways forward and really making the EU’s capital markets better,” he explained.

He also pointed out that we need to get clever with tech, especially things like “cash on ledger” or “programmable payments.” This is crucial to make sure the EU’s digital euro plays nicely with all the payment systems and services we already use.

Related: Italy engages with crypto firms on regulatory safeguards

Leithner believes a digital euro could seriously boost efficiency in financial dealings and give the EU’s economy more independence.

Minimizing the influence of US dollar on Europe

Leithner went on to say that if the EU puts together its key regulations like MiCA (for crypto), the AI Act, and DORA (for digital resilience), it “would let the euro really stand out and compete on a global scale.”

While Leithner is convinced a permanent digital euro is essential for making the EU’s finances more stable, competitive, and innovative, his policy paper didn’t dive into the technical details of how it would actually work or what the rules would be.

Back in January, Standard Chartered, a big bank, announced they’re setting up shop in Luxembourg to offer services for crypto and digital assets.

Standard Chartered’s crypto services in the EU will initially focus on Bitcoin.

Source: cointelegraph.com