The European Central Bank (ECB) is working on a digital version of the euro, a project started back in 2020 that is coming closer to fruition as the enabling EU legislation progresses. The ECB has designed a digital equivalent of cash, aimed at complementing physical euros for day-to-day payments. Its approach may be compared and contrasted with the US Federal Reserve’s reluctance to introduce a digital dollar and with the People’s Bank of China’s definition of the digital yuan largely as a bank deposit.
Has the ECB’s rationale for the digital euro evolved over time, from a response to tech challengers, such as Facebook’s Libra project in 2019, towards a more geoeconomic motivation of reducing critical dependency on non-EU payment service providers? What are the main features of the digital euro as currently considered? When will it be concretely introduced, and what are the risks and opportunities in Europe and globally?
HOST
Nicolas Véron
Senior Fellow, Peterson Institute for International Economics (PIIE)
GUEST
Piero Cipollone
Member of the Executive Board, European Central Bank
Video
About This Series
Europe faces a turbulent new era of economic, security, and governance challenges. Join Nicolas Véron, senior fellow at the Peterson Institute for International Economics, for What Now, Europe?, a virtual series and podcast with experts and practitioners diving into Europe's future in a changing world.