Getting ready for the digital future of the euro

The European Central Bank (ECB) is entering the age of digital money, as digitalization continues to impact all aspects of society and technology. The COVID-19 pandemic has accelerated the shift towards digital and online payments, leading to a decline in the use of cash. While private digital payment solutions offer convenience and efficiency, they also pose risks in terms of privacy, safety, and accessibility. Central banks, including the ECB, have a responsibility to provide a safe and universally accepted means of payment to citizens. In response to the digital transformation, the ECB has decided to formally launch a project to prepare for the possible issuance of a digital euro. This project follows previous exploratory work and aims to reduce transaction costs, foster financial inclusion, ensure safety and privacy, and encourage innovation. The ECB will engage with stakeholders, conduct focus groups, and work towards developing a digital euro in the next two to three years. The goal is to create a digital currency that adds value for everyone involved and supports European progress while maintaining stability.

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