ECB says digital euro’s success hinges on uptake

The digital euro project will be successful only if the instrument is actively used. This is stated in the document ECB on the key objectives of issuing CBDC.

We are responsible for preserving the integrity of the monetary and payment systems in the interest of citizens. A digital euro could play a decisive and beneficial role in this endeavour, serving as a public good for the transition of our society and economy into the digital age https://t.co/ykZtJSuYUp

— Christine Lagarde (@Lagarde) July 13, 2022

The authors of the article were the head of the ECB, Christine Lagarde, and a member of the Governing Council, Fabio Panetta.

“The digital euro can be successful only if it enters into Europeans’ everyday lives. This will increase its value relative to existing solutions,” they said.

The document says that the digital euro is aimed at user needs. They, in turn, value broad acceptance, ease of use, low costs, high speed, security and protection of their rights.

The regulator also noted that the digital euro would safeguard its monetary sovereignty, offering a backstop in the event of heightened geopolitical tensions. CBDC would provide guarantees of maintaining trust in the currency issuer — the ECB.

The regulator aims to complete the study phase of the digital euro by autumn 2023. By that time the ECB will provide additional details.

The initiative to issue a digital euro dates back to in November 2019. In October 2020 the ECB published a comprehensive report on the topic.

In May 2022 Fabio Panetta suggested that the CBDC could be issued by 2026.

Later the official said that the ECB would cap the issuance of the digital euro at 1.5 trillion.

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