Economy > Digital Currency

Europe Turns to Digital Currency

The digital euro ranks among the most ambitious projects within the political architecture of the European Union. 

Thomas Kolbe | June 1, 2026

In an interview with Handelsblatt, Bundesbank President Joachim Nagel dismissed criticism and concerns surrounding the digital euro. The possibility that the project could ultimately evolve into a form of capital control appears to play virtually no role either in banking circles or in government-aligned media.

The digital euro ranks among the most ambitious projects within the political architecture of the European Union. As the Eurosystem and the EU increasingly merge into identical and integrated political spaces, it can no longer be denied that this CBDC project is primarily a geopolitical power play by Brussels. Yet the euro-CBDC -- shorthand for “central bank digital currency” -- remains stuck in a loop. Originally envisioned years ago as already being in the project phase, the first digital wallets are now not expected before the end of 2029.

During the interview, Nagel emerged as an articulate advocate of a euro-CBDC, despite the fact that its introduction would inevitably hand enormous power to the European Central Bank as issuer and administrator of digital wallets. This would coincide with the dismantling of core business areas currently controlled by commercial banks. Nagel downplayed the danger of large-scale capital flight from accounts held at savings banks, Deutsche Bank, and others, arguing that planned digital wallets would be capped at €3,000. With this argument, Nagel attempts........

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