Cardano Founder Warns EU Digital Euro Could Impose Spending Caps

Cardano founder Charles Hoskinson has expressed deep skepticism about the European Union's plans for a digital euro, warning that it could lead to spending restrictions and financial surveillance. Speaking at the Future of Money, Governance & the Law Summit in New York on October 2, Hoskinson predicted that the digital euro could become a 'financial panopticon', a system that monitors and controls transactions. He cited concerns that individuals might be denied purchases, such as fuel, even if they have sufficient funds, due to programmable spending limits.

Hoskinson argued that the EU's draft law, which currently rules out programmable spending rules, lacks binding legal force. He urged the EU to enshrine these safeguards in law to prove his fears are unfounded. 'Don’t believe it? Well, then put it in some sort of law that you’re not gonna do it,' he stated. He also promoted his Midnight privacy network as an alternative, emphasizing that code should enforce a 'can’t be evil' standard.

The European Parliament has begun closed-door negotiations on the digital euro, but key details, such as merchant fees and balance caps, remain unresolved. The European Central Bank (ECB) plans a 12-month pilot starting in late 2027, with potential issuance in 2029. In contrast, the U.S. Senate has temporarily banned central bank digital currencies until 2030, leaving Europe to address critic concerns through written guarantees.

Meanwhile, the summit also featured a panel on AI in finance, led by BeInCrypto Global Head of News Brian McGleenon. The discussion involved experts from the IRS, Mastercard, and the UN Joint Staff Pension Fund, exploring who should control AI-driven financial systems. BeInCrypto Research and the Government Blockchain Association are set to release findings on AI, blockchain, and quantum computing in finance by January 2027.