The Eurozone is expected to be less dependent on U.S. credit cards once the digital euro is introduced. The European Parliament’s Economic Committee’s approval of the draft rules comes after three years of dispute between the ECB and the banks, which were concerned about deposit outflows and lost revenue and sought to limit the scope of the project.
Speaking on the Alpha News program, Marios Papaefstathiou, Professor of Economics and New Technologies, explained that the digital euro will have exactly the same value as the coins and banknotes we use today.
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“If you have €20 in your pocket, that’s public money because it was issued by the ECB. With the digital euro, that same €20 will also be available in digital form, in your digital wallet or on some other approved device.”
Essentially, it will be yet another form of payment, without replacing any other. When asked what need the digital euro is intended to meet, Mr. Papaefstathiou noted that we are entering a digital age.
“The more digital the world becomes, the greater the importance of system resilience. Essentially, a democracy is stronger when it protects both digital progress and the freedom to use cash.”
One of the goals, among others, is to reduce Europe’s dependence on non-European payment systems. “The digital euro is here to fill that gap with a common European framework,” he added.
See everything Mr. Papaefstathiou discussed on the Alpha Enimerosi program:
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