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A battle is brewing between Europe’s most powerful nations and the European Central Bank (ECB) over control of a new monetary tool that both sides fear could destabilize the continent’s banking system if mismanaged.
At the heart of the conflict lies the digital euro — a virtual counterpart to euro coins and banknotes. For years, the ECB has been developing the instrument, envisaging a pan-European payment challenger with the ability to rival United States heavyweights like Visa and Mastercard.
But as the project nears reality, a tug-of-war has erupted. Several European Union governments, including France and Germany, argue the ECB has gained too much control over one crucial aspect: how much digital currency citizens will be allowed to hold in “wallets” backed by the central bank....
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