He warned that without a public digital option, privately issued stablecoins could gain too much ground—especially in cross-border transfers.
Cash is indispensable as a way to pay and to store value, says Executive Board member Piero Cipollone.
We are modernising banknotes, ensuring they remain accessible and widely accepted.
A digital euro will complement this by bringing the benefits of cash to digital payments.
That worries regulators who fear a shift away from the euro. By building its own digital currency, the ECB plans to keep control firmly in its hands.
A working paper published on March 13 found that Europeans aren’t exactly lining up for a digital euro. When people were asked to split 10,000 euros (about $10,800) among different assets, only a small slice went to the digital version.
Cash still dominated. Based on reports, that survey showed nearly all respondents kept most of their mix in coins, bills or traditional bank deposits.
Some analysts say the world needs a stablecoin rulebook, pointing out that strong global coordination is vital to check the power of dollar-pegged coins.
Other financial experts agree, highlighting the significance of options like regulated euro-pegged stablecoins, distributed ledger applications and the digital euro itself.
By stressing that cash is here to stay, the ECB sends a clear message: innovation must not come at the cost of stability.
The plan is to roll out the digital euro in a way that works for all Europeans—whether they live in a city with fast internet or a town where ATMs are lifelines.
Featured image from Meta, chart from TradingView
