How to pay with digital euro – Money

On Wednesday, the central bank said it was launching a two-year study to try to understand “the most important issues related to the design and distribution” of the digital euro. The institution will also analyze the potential market effect of the digital currency. After the end of the study, a decision will be made whether the eurozone will have its own digital currency.

Expert analyzes by ECB experts so far have shown that digital payments can be as anonymous as the use of cash. One of the issues discussed was that with the digital euro, the ECB and commercial banks, from which one can exchange paper banknotes for the digital euro, will know who and to whom each euro pays a cent. It is very likely that there will be a limit on the amount that any European will be able to convert, with € 3,000 currently being talked about.

Promises are also for far greater confidentiality of payments, at least for smaller amounts up to about a hundred euros. They will be performed between devices connected via Bluetooth or NFC.

Fabio Panetta, a member of the ECB’s executive board, says that there is a possibility for the digital euro to be created and working from 2026. The institution is concerned about the potential problems that the delay will create, including the entry of other digital coins operated by private companies.

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The introduction of the digital euro will not mean the end of paper banknotes, but it will work in a similar way: Europeans will be able to use electronic money issued by the European Central Bank through digital wallets. The funds will be kept in the ECB, not in commercial banks. There are basically two security benefits: eliminating the risk of bankruptcy in commercial banks and the possibility of banknotes being stolen.