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The digital euro for you
The European Central Bank (ECB) may decide to issue digital euros. A new means of payment that could also be useful for you.
The euro: notes and coins now, maybe also digital in the near future
Since 2002, we have had euro notes and coins for our cash payments. Cash is still a key payment method. The next step is to introduce euros in digital form: the digital euro. The European Commission has drafted a proposal for this purpose. It’s up to European legislators to approve it or not. If they do, the European Central Bank will decide whether or not to issue the digital euro. If it does, the digital euro will probably not be introduced until 2029 at the earliest.
Paying with the digital euro
What if the digital euro was introduced? Would you like to use it? If so, you would need to set up a digital euro wallet. You can do this at your own bank or at another bank. You can then transfer money from your bank account to your digital wallet. You can also get a digital euro debit card and put cash on it. Once you have money in your digital euro wallet, you can use it to pay for things. You can pay with a debit card or with an app from the bank or the ECB. You can use your digital euros to pay in shops and at web stores. You can also send money to a friend.
Offline and online payments
With your digital euro wallet, you can pay both offline and online. Paying online with the digital euro is as quick and easy as paying from your bank account. So if you are in a shop and the Wi-Fi is bad, for example, you can still pay with the digital euro offline. Just get the amount from your digital wallet and transfer the digital euros to the recipient, like you do with cash. And you can always pay the exact amount, so there is never any hassle with change.
Privacy of digital euro
If you pay offline with the digital euro, your privacy you have is similar to that of a cash payment. When you transfer digital euros, the central bank or your own bank cannot see who you are paying to. Of course, you will notice that your digital wallet’s balance has gone down, and the recipient will see their balance go up. Privacy is also assured in online payments with the digital euro. The ECB cannot link your payments to specific individuals. So the central bank does not know who you are and who you pay to.
How to pay offline with digital euros
Suppose you hold digital euros in the app on your phone or on a card. In a shop, you tap your card or phone against the payment terminal to pay. You can also pay offline to a person near you by holding your phones close together. The devices contact each other via a communication technology knowns as near field communication. If you want to check your digital euro balance when you are offline, you can do so with an app. Depending on the ultimate design of the card, checks may also be possible.
No interest, day-to-day use is free
You can hold up to a certain maximum amount in your digital euro wallet. This maximum amount will be determined later. You will not get any interest on the balance in your digital euro wallet. But then again, you will never pay interest on your overdraft. Because you cannot spend more than your wallet balance, just as with cash. You may choose to top up your wallet automatically from your bank account. You can set up and hold your digital euro wallet free of charge, and your day-to-day payments are free.
Pay with digital euros in all shops
The European legislative proposal states that all retailers will be obliged to accept the digital euro. So you will be able to pay with the digital euro in all shops and online stores in all euro area countries.
The digital euro is for everyone
The digital euro is for all of us, just like cash. The digital euro should be very easy to use, regardless whether you are young or old, have good or poor vision, and whether or not you are able to use apps. If you are not very digitally savvy you can get help at your bank or a library. Also, you are free to use a card if you don't want to or cannot use an app.
Value of the digital euro
The European Central Bank will issue the digital euro and guarantee its value, just as with euro notes. A central bank cannot go bankrupt. One digital euro will always have the exact same value as a one-euro coin.
Digital euro is not a crypto-asset
Have you always assumed the digital euro was something like bitcoin? It isn't – a digital euro is not a crypto-asset. Crypto-assets are not backed or managed by any bank, a central bank or any other central institution. So no one guarantees their value. It’s the exact opposite with the digital euro, because the ECB guarantees its value.
Three means of payment
If the digital euro will be introduced, you will have a choice of three means of payment: cash euros, digital euros and the digital money in your bank account. Of course, you won’t be obliged to use the digital euro. It will be an additional means of payment that might be useful for you. The euro - both cash and digital - is public money, issued by the ECB. In addition, you have digital money in your account with a bank, which is a private company. That’s why that money is called private money.
Developing the digital euro
The national central banks of the euro area countries are jointly exploring the possibility of issuing a digital euro alongside cash. Read the background stories and latest news about how the digital euro is being developed.