Why do we need the digital euro?
The digital euro would, along with cash, preserve people's freedom to choose how to pay.
The way people pay is changing rapidly: more than half of all retail payments are now digital and online shopping is on the rise. The digital euro would offer a new way to pay, giving everyone in the euro area the option to use central bank money in both physical and digital form.
By complementing cash, the digital euro would make central bank money available for payments, bringing the euro into the digital age. It would support financial inclusion, protect privacy, and make payments easier and more secure for all. This is why we are preparing technically for the possibility of issuing the digital euro once the relevant legislation has been adopted.
At the same time, we remain committed to ensuring that cash continues to be accepted everywhere in the euro area too.
What would the digital euro mean for you – and for the euro area?
The digital euro is designed to meet the changing needs of people, businesses and the economy – here’s why it matters.
The evolution of money
Many aspects of our lives are becoming digitalised, and money is no different. Cash will continue to be a payment option; it will not be replaced. At the same time, to ensure that our currency remains future-proof, it needs to evolve in line with people’s payment preferences. Similarly to cash today, the digital euro would bring inclusivity and privacy in the digital era.
Making our lives easier
The digital euro would make our lives easier by giving us the choice to pay with a secure means of payment which is universally accepted throughout the euro area. Like cash, paying with digital euro would be free of charge for everyone in the euro area.
A stronger Europe
The digital euro would make the euro area more robust. It would reduce the euro area’s reliance on non-European providers, help unify the fragmented payments landscape, and support innovation and competition. The digital euro is designed to give everyone in the euro area access to a secure, resilient, public digital payment option – backed by the ECB and available alongside cash.
What is central bank money — and why does it matter?
What is central bank money?
The money that we at the ECB create is called central bank money. The cash in your wallet or purse is central bank money. In fact, banknotes and coins are currently the only kind of central bank money available to the public. Central bank money is also called public money because it is issued by a public institution – the central bank – and is therefore backed by the public sector in the euro area.
What is private money?
When a bank gives you a loan and the money appears in your account it is private money. Your bank account balance and savings are private money. And when you pay with a card or online, you’re also using money that your bank created. In fact, today, most electronic payments in the euro area are in private money.
The digital euro: bridging the gap
Today, people do not have access to central bank money in digital form. We aim to combine the reliability of central bank money with the convenience of digital payments. This would provide people in the euro area with public money in electronic form, in addition to cash. The way to do this is a central bank digital currency: the digital euro.