What is the Digital Euro?

If approved, the Digital Euro will be the digital version of actual the currency - the euro. There will be a "central bank digital currency" (CBDC), supported by the European Central Bank (ECB) and available to the general public. The digital Euro will be distributed by Payment Service Providers to citizens and businesses.

It is important to note that the digital euro and cryptocurrencies are not the same thing. Unlike cryptocurrencies, the security, stability of value and exchangeability of the digital euro for the same amount of cash will be guaranteed by the ECB.

What does Euro Digital bring to consumers?

The digital euro will increase the number of payment methods available. Consumers will be able to make digital payments in euro anywhere in the euro area. It also provides for the possibility to make these payments even in situations without internet access (offline payments), as long as you are close to the entity that will receive the payment. With this possibility, consumers will be able to make digital payments even without a bank account.

Finally, Euro Digital seeks to ensure the protection of consumers' personal data. For offline payments, privacy will be the same as for cash payments.

Analysing this proposal, DECO is happy with some of the features of the digital version of the Euro meet the demands advocated by DECO and other European Associations. These include: The maintenance of the physical (cash) and digital versions of the Euro; A Digital Euro account free of charge for all Eurozone consumers; Mandatory acceptance in all commercial establishments; Possibility of payment in an offline environment; Strict criteria for transaction recording and payment privacy; Establishment by Payment Service Providers of dedicated customer services for vulnerable consumers.

With regard to the new Euro trajectory, DECO welcomes the proposal presented, as it incorporates their demands, namely with regard to: Mandatory acceptance of cash; More generalised access to the digital euro.

In case of doubt or complaint, please ask DECO for clarification. You can contact DECO by e-mail: deco@deco.pt or by phone: 213 710 200 and 966 449 110.

Author

Paula Martins is a fully qualified journalist, who finds writing a means of self-expression. She studied Journalism and Communication at University of Coimbra and recently Law in the Algarve. Press card: 8252

Paula Martins