ECB considers digital euro to complement cash in the eurozone

The European Central Bank (ECB) is analyzing the introduction of a digital euro, a project designed to complement cash in an economy where electronic payments are increasingly dominant. The initiative aims to provide a public alternative to private payment solutions, ensuring security, accessibility, and monetary sovereignty.

According to the ECB, cash remains essential, but its use has declined significantly in recent years. Between 2019 and 2024, the share of cash payments in the euro area dropped from 68% to 40% by volume and from 40% to 24% by value.

ECB officials state that the digital euro would function like physical money but in digital form, enabling free, instant transactions available both online and offline. Access would be possible through a digital wallet provided by banks or public authorities, with funds convertible 1:1 with cash.

The ECB warns that without a digital euro, dependence on private and non-European networks will increase, potentially affecting competition, resilience, and the bloc’s financial sovereignty.

The project also includes limits on holdings to prevent large withdrawals from commercial banks. Officials emphasize that payments would maintain a high level of privacy, especially for offline transactions.