The discussion about the digital euro is a central topic in European monetary policy. In particular, its potential impacts on private investors and the overall financial structures are in focus.
Background and Development of the Digital Euro
The digital euro, a project developed by the European Central Bank (ECB), is intended to complement existing cash. According to the ECB, its introduction could strengthen Europe’s digital sovereignty and reduce dependence on US tech companies like Mastercard, Visa, or PayPal, with a technical implementation expected as early as 2027.
Criticism and Concerns
Costs for Banks and Savings Banks
A study by PwC estimates that the introduction of the digital euro could cost banks and savings banks up to 30 billion euros. This prospect raises significant concerns within the financial sector.
Centralization and Control
Some experts warn that the digital euro could be used as an instrument for centralization and control by increasing oversight and regulation of transactions.
Tech Giants
There are fears that the ECB’s infrastructures could strengthen international tech giants, which could disadvantage European providers.
Impact on Private Investors and Monetary Policy
Private Investors
For private investors, the digital euro could open up new opportunities for digital payments, but there are also concerns regarding data protection and the possibility of increased regulation.
Monetary Policy
The digital euro could influence the ECB’s monetary policy by expanding the tools for controlling the money supply and inflation, albeit at the expense of traditional banking operations.
Conclusion
The digital euro presents both opportunities and risks. While it could strengthen digital sovereignty, there are concerns regarding costs and control. The development remains an exciting field in the European financial landscape.