EU Financial Reform: Deutsche Börse CEO Pushes for Digital Euro CBDC

Stephan Leithner, CEO of Deutsche Börse, has called for financial reforms in the EU, emphasizing the need for a permanent central bank digital currency (CBDC) to strengthen the region's financial independence. In a policy paper released on February 15, Leithner outlined a 10-step strategy to transform the EU's Capital Markets Union into a Savings and Investments Union, with the digital euro as a core component.

Leithner highlighted the digital euro's potential to enhance the EU's financial strategy, positioning it as a leader in digital innovation. He urged collaboration between the European Central Bank (ECB) and national central banks for seamless integration of the CBDC into capital markets. Technological advancements in "cash on ledger" and "programmable payments" systems were emphasized to ensure compatibility with existing payment infrastructure.

The proposed CBDC aims to streamline transactions and bolster economic sovereignty. Leithner also stressed the importance of aligning key regulatory frameworks such as the Markets in Crypto-Assets Regulation (MiCA), the AI Act, and the Digital Operational Resilience Act (DORA) to give the euro a competitive global edge and reduce the EU's reliance on the US dollar.

While the policy paper highlighted the digital euro's significance for financial stability and innovation, it did not detail the technical implementation or regulatory measures required. In related developments, Standard Chartered announced plans to launch a Luxembourg-based crypto custody entity, initially offering Bitcoin and Ether services, with expansion plans in 2025.