The ECB’s path to a digital euro

While other economic blocs aren’t so convinced of the merits of issuing retail central bank digital currency, the eurozone is ploughing ahead. In doing so, however, it is having to water down the project to such an extent that its usefulness will be limited.

Most ordinary Europeans haven’t even heard of plans to issue a digital euro. Even in the mainstream financial sector, people are at best lukewarm about the idea.

A key trigger for central bank digital currencies – the growth of private cryptocurrencies, including stable coins – has lost its impact now, as the crypto winter looks like it might become an ice age.

Nevertheless, the digital euro project is gaining momentum.

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