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.

May 16, 2023 . 2:37 PM

1 min read

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.