Digital Transformation of Finance and Its Economic Implications in Europe

This thesis examines the digital transformation of finance in Europe and its broader economic implications, with particular attention to digital currencies and the evolving role of public institutions. It first explains the conceptual foundations of financial digitalization, showing that this process goes beyond the use of online banking or payment apps and represents a structural transformation of financial services, market infrastructure, data governance, and monetary relations. The study then analyzes the European Union’s digital finance agenda, including the regulatory framework, the rise of fintech, and the digital euro project as a possible form of public money in the digital age. Special focus is given to the role of central banks in maintaining monetary stability, payment efficiency, and public trust. The thesis also evaluates the economic effects of digital finance on financial intermediation, monetary policy, trade, inclusion, and strategic autonomy in Europe. The findings suggest that digital finance creates important opportunities for efficiency, innovation, and integration, but also introduces new risks related to regulation, privacy, financial stability, and unequal access. Overall, the research argues that Europe’s approach seeks to balance technological progress with stability, governance, and monetary sovereignty.