Digital Euro Must Serve Public Interest, Warn 70 European Economists

VADODARA, January 12, 2026 — In a significant move for the latest crypto news, a coalition of 70 European economists and policy experts has issued an open letter to the European Parliament, demanding that the digital euro prioritize public interest over commercial interests. According to Cointelegraph, the letter emphasizes the currency's role in preserving monetary sovereignty and ensuring universal access to central bank money as cash usage declines.

Market Context & Background

This intervention occurs against a backdrop of increasing central bank digital currency (CBDC) development globally, with projects like China's digital yuan and the U.S. Federal Reserve's exploration of a digital dollar. Underlying this trend is a strategic competition for financial infrastructure dominance, where delays could cede ground to private entities. Historical cycles suggest that monetary policy shifts, such as the introduction of EIP-4844 for Ethereum scalability, often precede liquidity grabs in crypto markets. Consequently, the digital euro's design could influence cross-border payment rails and interoperability with decentralized finance (DeFi) protocols.

What Happened?

On January 12, 2026, the group of economists and experts submitted an open letter to European Parliament members, as reported by Cointelegraph. They argued that a digital euro is essential for safeguarding Europe's monetary sovereignty and maintaining public access to central bank money amid declining cash usage. The letter specified that the currency should be a public digital payment method issued by the Eurosystem, usable across Europe with basic services provided free of charge. It also stressed that the digital euro must complement, not replace, physical cash. The experts warned that hesitation by the European Union could allow non-European card companies and Big Tech payment firms to dominate the market, undermining Europe's payment infrastructure autonomy and crisis response capabilities.

Technical Analysis & Price Action

Market structure suggests that regulatory announcements often create fair value gaps (FVGs) in crypto assets, as seen with previous CBDC developments. For Bitcoin, current price action shows support at $90,000, with resistance near $95,000 based on volume profile analysis. The RSI indicates neutral momentum, while moving averages (50-day and 200-day) are converging, signaling potential consolidation. Bullish invalidation is set at $90,000, where a break below could trigger a liquidity grab toward $85,000. Bearish invalidation lies at $95,000, above which a gamma squeeze might occur if institutional inflows align with positive regulatory sentiment.

By The Numbers

Why It Matters

This development matters because it could redefine Europe's financial ecosystem, impacting both institutional and retail participants. For institutions, a well-designed digital euro might enhance settlement efficiency and reduce reliance on private payment networks, as outlined in the European Central Bank's digital euro project documentation. For retail users, free basic services could increase adoption, but privacy concerns and programmability features, akin to Ethereum's smart contracts, require careful calibration. On-chain data indicates that CBDC integrations often lead to increased regulatory scrutiny on cryptocurrencies, potentially affecting market liquidity and volatility.

Community Sentiment

Market analysts on social media platforms like X/Twitter are divided. Bulls argue that a public-focused digital euro could legitimize crypto assets by fostering regulatory clarity, as seen in discussions around Standard Chartered's recent crypto prime brokerage launch. Bears caution that over-regulation might stifle innovation, citing parallels with Ethereum's push for self-sufficiency. Overall, sentiment leans neutral, with many awaiting further legislative details.

Price Prediction / Future Outlook

Bullish Case: If the European Union adopts the economists' recommendations swiftly, it could boost confidence in digital assets, leading to increased institutional investment. Bitcoin might break above $95,000, targeting $100,000 as a new order block forms. This scenario assumes alignment with global CBDC trends and positive macroeconomic indicators.Bearish Case: Delays or contentious debates over the digital euro's design could exacerbate regulatory uncertainty, triggering a sell-off. Bitcoin could fall below $90,000, testing $85,000 as a support level. This would mirror past events where policy indecision led to market downturns, such as during the 2023 regulatory crackdowns.