Digital euro will complement cash, not replace it

“If we want the digital Euro to become a success, we need a clear and convincing narrative of why we need it in the first place. People need to see the benefits of a digital Euro in their day-to-day lives. The European Central Bank and the European Commission have yet to make a compelling case of why we need the digital Euro and what added value it will deliver,” explained Markus Ferber MEP, the EPP Group Spokesman in the European Parliament's Economic and Monetary Affairs Committee. His comment comes as the Commission was expected to present its Single Currency Package, including a legal framework for the digital euro on 28 June.

“There are no obvious gaps in the EU’s payment landscapes. If we are just duplicating the existing payment infrastructure with the digital Euro, that is not a good enough business case,” said Ferber.

Markus Ferber sees no danger that cash could be abolished: “While payments are going more and more digital, for many people cash remains king. The digital Euro should complement cash, but must not replace it. I am glad to see that the Commission is also thinking about how to retain cash as a means of payment.”

The current design elements suggest that the digital Euro will essentially only be used for retail payments. "The biggest advantages, though, of a digital currency would be in the business world. We need to at least keep the possibility of future upgrades open. If we introduce a digital version of the Single Currency, it needs to be ready to harvest the opportunities of the digital world,” concluded Ferber.

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