- European Central Bank plans to issue an electronic version of euro to modernize payments and to promote euro's weight globally.
- Digital euro will complement cash, not replace it. Infrastructure to be built and tokens to be issued by ECB, but day-to-day operations to be left to commercial banks.
- Declining use of cash, fear of privately controlled digital currencies, and a lack of European payments champion are some of the motivations behind the digital euro project.
- Questions raised by consumers, financiers, and politicians about the project's purpose and potential risks.
- The European Commission is preparing draft legislation for the legal framework underpinning the digital euro.
The digital euro: a solution seeking a problem?
The European Central Bank's plan to issue a digital euro aims to modernize payments and promote euro's weight globally. However, questions have been raised about its purpose and risks.