Fintech Disruption and EU Governance: CBDCs, Geopolitics, and Institutional Adaptation at the Meso-Level

Fintech Disruption and EU Governance: CBDCs, Geopolitics, and Institutional Adaptation at the Meso-Level Lucia Quaglia*, University of Bologna and Amy Verdun, University of Victoria Paper submitted for consideration in the ECPR Joint Sessions of Workshops 2026 7 – 10 April University of Innsbruck, Austria, directed by Mark Rhinard (Stockholm University) and Sandrino Smeets (Radboud University) Abstract This paper explores how the rise of fintech innovations—cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs)—combined with shifting geopolitical dynamics, particularly U.S. dollar dominance and China’s growing financial influence, is reshaping the European Union’s governance architecture. Focusing on the meso-level, the analysis examines the European Central Bank’s dual strategy of developing retail and wholesale CBDCs while safeguarding the continued use of cash. The study addresses five dimensions of institutional response: depth, assessing how crises penetrate administrative layers; breadth, evaluating spillover effects beyond monetary policy; duration, considering the persistence of changes amid an ongoing, multifaceted crisis; type, classifying effects from incremental to transformational; and drivers, identifying causal mechanisms behind EU adaptation. Empirically, the paper incorporates the Netherlands as a case study, highlighting tensions between governmental support for digital currency and societal resistance, including protests, NGO involvement, and parliamentary petitions. By situating these developments within broader geopolitical and domestic contestation, the paper contributes to understanding how crises in financial technology catalyze institutional change in the EU. Keywords Fintech, Central Bank Digital Currency (CBDC), EU Governance, Geopolitics, Institutional Change, Meso-Level Analysis Lucia Quaglia is a co-author but will not be attending the workshop.