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Today, I will explain why it is imperative for the ECB to introduce a digital euro. I will first discuss the roles of central bank money and commercial bank money over Although it was too early to discuss the design of the digital euro, the duo noted that the Central Bank expected Profit maximization is not among the objectives set by the ECB to roll out the digital euro. Instead, introducing a digital euro would minimise the likelihood of adverse economic outcomes in the The EESC believes the adoption of a digital euro will benefit everyone in the euro area by making payment transactions quicker and more efficient, but financial and digital In this regard, the design choices adopted by the ECB should be based on a documented impact assessment of all risks concerned still privileging innovative, privacy enhancing technologies MEPs say public trust is necessary for a successful rollout of the digital euro and want the ECB to demonstrate its benefits before legislators, rather than the ECB The digital euro can potentially offer many benefits over existing means of payment. However, most benefits as specified in the two reports are systemic and social, rather than individual.

Is adoption necessary for a successful digital euro? Absolutely. The European Central Bank (ECB) is considering a digital euro, and its widespread adoption is crucial for its success. Today, I will explain why it is imperative for the ECB to introduce a digital euro. I will first discuss the roles of central bank money and commercial bank money over traditional payment systems.

MEPs say public trust is necessary for a successful rollout of the digital euro and want the ECB to demonstrate its benefits before legislators, rather than the ECB dictating terms. The success of the digital euro hinges on public acceptance and usability. While it was too early to discuss the design of the digital euro, the duo noted that the Central Bank expected a well-designed digital euro to seamlessly integrate into the existing financial ecosystem.

The digital euro can potentially offer many benefits over existing means of payment. However, most benefits as specified in the two reports are systemic and social, rather than individual. The EESC believes the adoption of a digital euro will benefit everyone in the euro area by making payment transactions quicker and more efficient, but financial and digital literacy are key to ensuring equitable access and understanding.

Profit maximization is not among the objectives set by the ECB to roll out the digital euro. Instead, introducing a digital euro would minimise the likelihood of adverse economic outcomes in the face of increasing digitalization and the potential dominance of foreign payment providers. Therefore, user-centric design and addressing privacy concerns are paramount.

In this regard, the design choices adopted by the ECB should be based on a documented impact assessment of all risks concerned, still privileging innovative, privacy enhancing technologies to foster trust and encourage widespread adoption. Ultimately, a successful digital euro requires careful consideration of design, user experience, and public perception to ensure its benefits are realised and its adoption is widespread.

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