ECB Executive Board Member: Action must be taken swiftly to advance the digital euro project

ChainCatcher news, according to Jinshi reports, ECB Executive Board member Fabio Panetta stated that while central banks have long provided central bank money for wholesale transactions, we do not yet have a digital form of cash. As the use and acceptance of cash decline, this issue is becoming increasingly prominent. Therefore, the European Commission has proposed a legislative initiative to ensure the acceptance of cash, and the ECB is also committed to maintaining the widespread availability and accessibility of euro cash.

Nevertheless, the trend of reducing the use of banknotes in everyday transactions may continue, reflecting the digitalization of economic activities and the patterns of many developed economies. We must act swiftly to address the risks posed by Europe’s current inability to ensure the integration and autonomy of its retail payment systems. This is a key motivation behind the digital euro project: to bring central bank money into the digital age, providing digital currency equivalent to banknotes and strengthening our monetary sovereignty.