The whole truth about the digital euro
Much of our lives is already in the cloud and we're increasingly making transactions with our mobile devices. So why hasn’t our money gone digital? Imagine money as dependable and secure as euro banknotes and coins, but in a different format: a digital euro. What would that look like? What features would it have?
Few forms of money prompt as many questions – and so much misinformation – as the digital euro. Join us as we uncover the whole truth about this potential digital euro.
“The aim is to modernise access to central bank money – whether physical or digital – and give people the choice to use whichever they want, wherever they want. Getting rid of cash is not on the agenda”.
There are countless hours of content about the digital euro, but a lot of it tends to be almost dystopian, rather than realistic. Let’s look at how our currency could truly exist in digital form.
Just as cooking or going for a walk are part of our everyday lives, so too are ordering food on an app or listening to a podcast. Not all of these activities happen in the physical world – increasingly, we live in the digital world.
So what about money? Why not digitalise it? While we do have many digital payment options, such as credit cards or Bizum, they come with geographical limitations and are issued by international firms or commercial banks. In short, they are not quite like cash – banknotes (and coins) you can hold in your hand; trusted legal tender, issued and backed by the European Central Bank (ECB).
The ECB has been preparing and designing a potential digital euro for some time, guided by the concept of money as a public good, free for basic use by the public and sharing as many characteristics as possible with cash, such as security, accessibility, privacy and universal acceptance in shops and among individuals.
Since the beginning, José Manuel Marqués Sevillano, Director of the Department of Financial Innovation and Market Infrastructures at the Banco de España, has been working with his team to create a digital form of our currency. He spoke to us about how the digital euro is being designed, how it might be used and when it could become a reality.
You may have heard a lot of speculation about the digital euro, but don't believe everything you hear. Find out first-hand why we are working on the digital euro and what it could look like.
