In general, both the European Commission and the ECB are aligned on the necessity of a digital Euro. In light of current market and technological developments, these institutions are recognizing that it may no longer be able to hold risk-free central bank money if the usage of cash continues to decline and electronic payments and privately issued digital currencies continue to gain prominence. These market shifts also pose potential risks to the EU's independence and stability. Other compelling reasons for the adoption of the digital Euro include cost reduction, reduced cyber risks, decreased ecological impact, enhancing financial inclusion, and facilitating the execution of monetary policy. Moreover, a digital Euro could bolster the Euro's credibility and international influence.

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“A 2 years’ preparation phase of the Digital euro will start in November, but the final decision to issue a digital euro, will only be considered after the EU has completed the legislative process.”

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What will the Digital Euro look like? 

Only the ECB will be able to authorize the issuance of the digital euro. However, both the ECB and the national central banks will be able to subsequently issue the money. The digital Euro will only be accessible for retail clients and digital Euro and Euro banknotes and coins will be convertible at face value. Online and offline payments will be possible. All payments will happen in real time. Digital Euro users will not have any contractual relationship with the European Central Bank or the national central banks. It will be the Payment Service Providers (PSP’s) who will be holding the digital Euro accounts for the retail users. Finally, the accounts will be non-interest bearing as the digital Euro is designed for transaction purposes only and should not be used as a store of value.

  

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