ECB’s Panetta Says Digital Euro Should Expand Overall Payment Solutions

Fabio Panetta, a member of the European Central Bank’s (ECB) executive board, detailed the roadmap for the successful inclusion of a “digital euro” on Friday.

The ECB is examining whether to introduce a central bank digital currency (CBDC) for retail payments, Panetta said in a speech at the Elcano Royal Institute, Madrid.
If payment trends in the European Union (EU) continue, cash could quickly lose its central role and become a redundant way of settling bills.
“Just as the postage stamp lost much of its usefulness with the arrival of the internet and email, so, too, could cash lose relevance in an economy that is becoming increasingly digital,” Panetta said.
The ECB, which had been discussing a CBDC since the start of the year, said in July it was moving to a more investigative phase that will last 24 months. A decision on whether to issue one would be made at a later stage, and that it was not envisaged to replace cash, Panetta said at the time.
Having a digital euro would allow people to continue using central bank money as a means of exchange in the digital era. The CBDC would have to be designed in a way that is attractive enough to become a widely used payment mechanism.
It should not, however, be viewed as a competitor to private payment services, he said. The digital euro should expand payment solutions without crowding out private payment services.
He said the ECB might issue a digital currency in order to safeguard consumer access to central bank money.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Parikshit Mishra

Parikshit Mishra is CoinDesk's Deputy Managing Editor responsible for breaking news coverage. He does not have any crypto holdings.

Follow @parikshitm899 on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.