Do we need the digital euro?

Are Europeans ready to introduce a digital version of the euro? After coins and banknotes, the European Commission is now proposing the digital euro, a virtual version of the currency issued by the European Central Bank that could be used free of charge alongside cash in the eurozone. 

How would European citizens benefit from a digital currency and what approach should be taken to develop it? The Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness, explained the challenges of creating this new currency and why we need a digital euro:

 "It's such a new concept. People are wondering. So this is the euro, it’s cash. And you know what, you see it, you understand it, but maybe I won't have cash in my pocket. So I want the alternative, the choice to have a digital version of cash. People aren't using cash as much as they used to, and COVID-19 really accelerated that trend. So it's about choice, essentially. Will I use this cash, which isn't in my wallet today, but it normally is? Or will I use a digital version of cash?"

The digital euro will be a digital version of euro notes and coins. It will have exactly the same value and can be used in exactly the same ways: To buy ice cream or clothes or to send money for a birthday party - even across national borders.

You could e.g. For example, use a QR code to make a payment from a secure app on your phone, and even make payments when there's no internet connection.

When fully deployed, merchants will need to accept the digital euro the same way they accept cash today.

The digital euro differs from cryptocurrencies as it is backed by the European Central Bank and thus its stability is guaranteed.

In a digitised world, the digital euro