Creating a digital euro for the future of retail payments landscape

Fabio Panetta, Member of the Executive Board of the ECB, addressed the ECON Committee of the European Parliament to provide an update on the investigation phase of the digital euro project. He emphasized the importance of issuing a digital euro to maintain the role of central bank money in the digital age. While private digital means of payment already exist, central bank money is the safest form of money as it is backed by the strength and authority of the State. Panetta highlighted the need to ensure that people continue to have access to central bank money in the digital era, especially as the use of cash declines and non-European payment providers and big tech companies enter the financial services sector. He also mentioned that a digital euro would provide new business opportunities and act as a catalyst for technological progress and innovation. The ECB is working on the design and distribution of a digital euro, aiming to strike a balance between different priorities, such as efficiency, financial stability, and privacy. The ECB plans to engage extensively with the public, merchants, and other stakeholders to gather their preferences and ensure the digital euro is attractive to consumers. Panetta emphasized the importance of close alignment with European authorities and institutions and the role of the European Parliament in any changes to the EU legislative framework for introducing a digital euro. He concluded by stating the need for forward-thinking and careful consideration to ensure that central bank money remains an anchor of stability in the evolving payment and financial system.

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