What does the digital euro deliver to the end user?

The digital euro divides opinion. The benefits for citizens are unclear.

The digital euro divides opinions. The benefits for citizens are unclear. A topic that also occupied the 3rd Blockchain Roundtable.

Digital central bank currencies are gaining importance worldwide. According to a study, 114 countries were working on a CBDC earlier this year - including the European Central Bank. The monetary watchdog is currently in a research phase. In October, a decision will be made on how the digital euro moves forward. A question that also concerns politicians.

The German FDP organized a discussion round on this in the Bundestag. The Free Democrats' blockchain expert, Frank Schäffler, invited several stakeholders from the financial sector. The room filled up quickly. They all wanted to get their questions out about the digital euro. In the end it was clear to everyone: we are only at the beginning. Especially the benefits for end users are still unclear.

For the parliamentary state secretary at the federal Ministry of Finance, a high level of privacy provides an incentive for the end consumer to use a digital euro before private solutions like Apple or Google Pay. They are fully capable of collecting less data, the FDP politician continued. To that end, EU finance ministers would gain a co-decision right with the ECB.

Jonas Gross of the Digital Euro Association praised the nearly two-hour event. For him, another benefit would be a feature that would make the digital euro usable both online and offline.

"ECB is under pressure to act"

Philipp Sandner of the Frankfurt School of Finance and Management shares a similar view. The ECB is under pressure, also because Bitcoin, stablecoins and not least China have intensified the pressure on the central bank. The People's Republic is a pioneer in this area and recently rolled out its CBDC in an entire city. There is no attention to privacy. In Europe this is essential for a successful digital euro, Sandner says. Without privacy features, end users will not change their payment behavior. But: "Ultimately the ECB cannot meet all requests."