Digitization has now spread to every area of our life, transforming the way we pay.
In this new era, a digital euro would guarantee euro area citizens that they can continue to have free access to a simple, universally accepted, secure and reliable means of payment. Hokk finance
The digital euro would be like banknotes, but in digital form: an electronic money issued by the Euro system (the ECB and the national central banks) accessible to everyone, citizens and businesses.
A digital euro would flank cash without replacing it. The Euro system will continue to ensure access to cash throughout the euro area.
A digital euro would broaden your choice of how to pay and make it easier to do so, contributing to accessibility and inclusion.
What are the other benefits of a digital euro?
A digital euro would combine the efficiency of a digital means of payment with the security of central bank money.
It would help manage situations where cash is no longer the preferred solution and avoid reliance on digital means of payment issued and controlled outside the euro area, which could undermine financial stability and monetary sovereignty.
The protection of privacy would be a fundamental priority: the digital euro will thus be able to help preserve trust in payments in the digital age.
When will it be ready?
In July 2021 we decided to start a project for a digital euro. This does not necessarily imply that we will issue a digital euro, but that we will prepare for this possibility.
Press release: Euro system launches project for a digital euro
What happens now?
We are discussing the characteristics that a digital euro could have. The investigation phase began in October 2021 and will last two years.
We will examine how a digital euro could be configured and how to distribute it to businesses and citizens, but also its impact on the market and any necessary changes to European legislation.
The decision on the possible introduction of a digital euro will be taken on the basis of this investigation phase.
What would it be like?
Experts from the ECB and national central banks of euro area countries have drawn up a number of basic requirements for a digital euro, such as ease of access, robustness, security, efficiency, respect for privacy and adherence to regulation. These requirements will help us define a digital euro.
A digital euro could be integrated with means of payment provided by private operators, stimulating the offer of pan-European solutions and additional services for consumers. Why wouldn’t a digital euro be a crypto asset?
Crypto-assets are fundamentally different from central bank money: their price is often volatile, which makes them difficult to use as a means of payment or unit of account, and they are not guaranteed by a public institution.
A digital euro could enjoy the same confidence placed in cash, as it would also be backed by a central bank. A digital euro for the digital age
A digital euro would be a digital symbol of progress and integration in Europe, said Fabio Panetta, Member of the Executive Committee, at the presentation of the report on a digital euro.
Since the introduction of the euro, the ECB has been responsible for maintaining public confidence in our currency. Together with cash, a digital euro would be accessible to all and offer a wider choice of means of payment.