What is the Digital Euro & What is the Point of its Use?

July 12th, 2022

The era of digitalization and ultra-advanced technology proposes a series of novelties and innovations for the market and society. The terminology of "digital currency" or the concept of "virtual currency" has begun to become increasingly popular in recent years. With the rise of some currencies, but also the intrigue and controversy surrounding the idea of digital currency, people have become increasingly curious and open to the new.

That is why legislators are also trying to keep up with social realities. Thus, at the level of the European Union appeared the proposal to implement digital EURO. A digital euro currency is not claimed to be a substitute for cash, but only the equivalent that completes it. Eurozone citizens will not be affected by the digital euro, as the Eurosystem continues to be accessible to them.

! Attention: The digital euro is not a virtual currency, but represents an electronic currency, i.e. issued by the European Central Bank and the national central banks in the euro area.

Considerations on which the digital euro is based:

  • An extremely simple and fast payment alternative

  • The equivalent of euro banknotes

  • Accessible to all individuals and legal entities

  • Additional options for remote payments

A real innovation in the field of payments, the digital euro is proposed as a safe and fast tool for making payments. Time, so precious for everyone, is the biggest gain for people who will choose such payment method. The payment of utilities, but also the daily transactions will be based on a fast and protected method.

3 advantages for which it is intended to create a digital euro currency

The digital euro meets many needs of the public. Regardless of whether we are talking about individuals, newly established or multi-national companies, at some point, they faced problems in making payments. An important aspect and at the same time a benefit is that the digital euro currency is complementary to the cash in the euro market.

Here are the 3 most important advantages for which the public would like to use a digital euro currency:

  • Digital payments

  • Whether we are talking about the transactions of a large company, or we are in a micro niche, digital payments are becoming more and more active in our lives. Very easy to use as cash is now, the digital euro currency will meet everyone's needs.

  • Waiting time

  • It is desired that the waiting time from making a digital payment, to confirmation and until receipt by the recipient be short. Through a digital euro currency, consumers will enjoy the most advanced payment systems of the moment.

  • Safety

  • The age of technology has not only evolved in a positive way. Numerous devices or applications ready to store your card data have been launched or are preparing to make new victims. Payments in digital euro currency will enjoy increased security.

Digital euro - source of inspiration

Specialists aim at making an analysis on the benefits, but also on the risks to which the society is exposed from a financial point of view when implementing such a currency.

Financial stability is one of the most important and sensitive issues that analysts take into account when talking about a digital euro currency. As in any market segment where innovation takes place, there are many questions and speculations about cyber risks or the impact on monetary policy.

Carefully examining the impact and the need for such a currency is part of the Eurosystem's strategy, and the digital euro is intended to contribute to user satisfaction.

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