The CEO of German securities marketplace Deutsche Börse, Stephan Leithner, is calling for financial reforms in the European Union, including establishing a permanent digital euro to strengthen the region’s financial autonomy.

In a policy paper published on Feb. 15, Leithner outlined a 10-step strategy to transform the EU’s Capital Markets Union (CMU) into a Savings and Investments Union (SIU), with a central bank digital currency (CBDC) at its core.

Leithner sees the launch of a permanent CBDC as a key element of the EU’s digital agenda and as a crucial component of its financial strategy.

Using the digital euro as a strategic asset

Speaking about the EU’s policy framework and broader approach toward digital thought leadership, the Deutsche Börse CEO said that the European Central Bank (ECB) and national central banks must work together to ensure that the digital euro enriches the region’s capital markets ecosystem.

“The ECB’s joint approach with national central banks around a central bank digital currency will facilitate exploration of the most suitable solutions and truly enrich the EU’s capital markets ecosystem,” he said.

He also highlighted the need for technological developments around “cash on ledger” or “programmable payments” systems to ensure seamless interconnection between the EU’s permanent CBDC and existing payment systems and services.

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Leithner said that a CBDC would improve efficiency in financial transactions and strengthen the EU’s economic autonomy. 

Minimizing the influence of US dollar on Europe

Leithner added that combining various key regulatory frameworks in the EU, such as Markets in Crypto-Assets Regulation (MiCA), the AI Act and the Digital Operational Resilience Act (DORA), “would enable the euro to gain competitive edge at global level.”

While Leithner sees a permanent digital euro as a critical tool for enhancing the EU’s financial stability, competitiveness and innovation, the policy paper did not elaborate on the technical implementation or regulatory framework.

In January, banking giant Standard Chartered announced plans to establish a new Luxembourg entity offering crypto and digital asset custody services.

Standard Chartered’s crypto offering in the EU will be limited to Bitcoin (BTC) and Ether (ETH), with more assets coming later in 2025, the bank’s head of digital assets, Waqar Chaudry, told Cointelegraph.

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