The European Central Bank (ECB) has just kicked off an “investigation phase” to explore different options for the digital Euro. This phase of detailed consideration for a European version of a Central Bank Digital Currency (CBDC) ushers in a new phase in the Euro’s history - 20 years after its initial launch on 1 January 2002. Complex questions and difficult choices lie ahead. The right balance needs to be struck to make the digital Euro robust, easy to operate and, at the same time, not a full replacement of either cash or bank money.

In this issue of our FinTech Perspectives, we will discuss the structural choices that the ECB will face during its investigation process. As we will show, the different options are wide ranging and imply very different qualities of Europe’s future digital currency.

The European Road to a Central Bank Digital Currency (CBDC)

Most Central Banks are in the process of evaluating, designing or even launching a digital version of their official currency – as an alternative means of payment on the basis of a crypto token. An up to date overview of the current status of all CBDC projects can be found at  https://cbdctracker.org/. To name just a few:

The Digital Euro as a means of payment

Shaping the digital Euro

Next steps