Challenges in Introducing the Digital Euro
The European Central Bank (ECB) has rejected the criticism from banks regarding the high costs associated with the introduction of the digital euro. According to a PwC study commissioned by European banking associations, the costs for banks in the Eurozone could amount to up to 30 billion euros. This estimate is based on an analysis of 19 banks, whose adaptation costs are estimated to exceed 2 billion euros.
ECB’s Criticism of the PwC Study
The ECB criticized the PwC study due to methodological flaws and a lack of transparency. It particularly noted the data basis based on only 19 out of more than 2,000 banks and the unverifiable additional costs of 12 billion euros. Therefore, the ECB does not consider the study a constructive contribution to the discussion on the digital euro.
Impact on Savers and Investors
A digital euro could enhance the efficiency and security of transactions as well as influence monetary policy aspects. However, the high introduction costs could lead to increased bank fees, which could burden savers and investors.
The Banks’ Perspective
Many banks view the introduction skeptically, fearing additional costs and complexity without clear added value. Existing payment systems already meet many requirements.
Trade Association and the Acceptance of the Digital Euro
The German Trade Association (HDE) supports the digital euro but demands a competitive-friendly implementation without a mandatory acceptance to avoid costly systems.
Overall, the introduction of the digital euro appears to be a complex undertaking that must be carefully planned to consider all stakeholders and ensure financial stability.