Waugh is among the owners of the Amsterdam Flames in one of the league's six franchises based in Dublin, Belfast, Edinburgh, Glasgow, Rotterdam and Amsterdam.
"We have just seen how strong European cricket is. I mean (Ireland) just beaten world champions India 2-0 in a T20 series and that shows potential for cricket in Europe," Waugh told Indian reporters in a video call after the conclusion of the ETPL player draft.
"There are excellent players all throughout Europe, particularly Netherlands, Scotland and Ireland, and they will showcase their skills in this league."
The former batter said: "We have got some world-class players in Mitchell Marsh, Steve Smith and Tim David, and they will be rubbing shoulders with these guys for five or six weeks."
"They are going to be fast-tracking their success with their knowledge, their mental application. This will be the best thing for European cricket that has ever happened," he added.
Thirty-six players from Ireland, Scotland and the Netherlands have been selected across the franchises.
India's Ravichandran Ashwin will be captain and mentor of Dublin Guardians, who are co-owned by Indian batting great Rahul Dravid.
Ashwin, an off-spinner who ended his career with 537 Test wickets, said the ETPL will be key in spreading the sport globally.
"There is an Olympics that's going to happen in a couple of years and if cricket as a game is serious about making it a global affair, I think the teams in this league will play a very crucial part in enabling that," said Ashwin.
"This is a really really exciting prospect. It is about Scottish players, about Dutch and about the Irish players and that is something we were very clear from the first day."
Los Angeles 2028 will see cricket returning to the Olympics for the first time since 1900, with a six-team T20 event in both the men's and women's game.
The ETPL's inaugural edition will feature 32 matches from August 26 to September 20.