A Ditial Euro for the EU
In their position paper, Dr.-Ing. Martin Florian and Ingolf G. A. Pernice from the research group "Trust in Distributed Environments" comment on the possible effects of the introduction of a digital euro.
With digital central bank money increasingly entering the global spotlight, the European Central Bank (ECB) is, too, exploring potential options. In this context, the European Comission introduced in April 2022 an initiative to gather insights for the regulation of such so-called Centrally Banked Digital Currencies (CBDCs). The position paper “A Digital Euro for the EU - A Comment on Potential Impacts“ comments on seven significant impacts that the introduction of CBDCs might evoke.
The authors focus on the unique position of the ECB to issue digital currency protecting EU citizens' rights and the danger of the possibility that digital payment systems can be repurposed as surveillance infrastructure. Moreover, the paper comments on potential impacts on monetary policy, financial innovation and financial stability. Finally, the implications for the resilience of the monetary system to large-scale monetary system failures and confidence in the Euro System are discussed.
This position paper was published by Dr.-Ing. Martin Florian and Ingolf G. A. Pernice of the research group “Trust in Distributed Environments“.