The digital euro, a currency issued by the European Central Bank (ECB), promises to profoundly change the financial system of Europe. It is expected to replace a significant portion of cash and alter the structure of bank deposits.
Digital Euro: Key Facts
The European Central Bank (ECB) forecasts that the digital euro could replace up to 50% of cash and 30% of bank deposits. The official launch is scheduled for October 2025.
Adoption Scenarios for the Digital Euro
The ECB is considering three levels of adoption: low, medium, and high. In a medium adoption scenario, up to 256 billion euros could be replaced with digital currency. However, even in the best-case scenarios, the circulation of the digital euro is expected to remain marginal compared to the total amount of cash in the eurozone.
Digital Euro as a Response to Strategic Challenges
Europe is actively supporting the digital euro project, unlike the United States. ECB board member Piero Cipollone asserts that the digital euro is vital for Europe's strategic sovereignty. Cybersecurity risks related to the digital euro have also been noted, prompting the development of the Polaris Project to enhance the resilience of CBDC infrastructure.
The digital euro could represent not just a monetary innovation, but a significant step towards reshaping Europe's financial landscape, influencing how Europeans use and store their money.
