Digital Euro
A digital euro is a proposed central bank digital currency that would let people and businesses use euro-area central bank money electronically.
A digital euro is a planned form of central bank digital currency for the euro area. It would be issued by the European Central Bank and national central banks, making it a direct form of public money, like cash, but designed for digital payments. Unlike a cryptocurrency such as Bitcoin, it would not be a decentralized asset with a market-driven price; one digital euro would be intended to equal one euro.
It matters because most everyday payments already happen digitally, but usually through commercial bank deposits, card networks, or payment apps. A digital euro could provide a public alternative for paying in shops, online, or person to person, potentially including offline payments for limited situations. For example, instead of sending money from one bank account to another through a card or transfer network, a user might pay from a digital euro wallet backed by the central bank. It would complement cash rather than replace it.
Other terms in CBDCs
CBDC
A central bank digital currency is digital money issued by a country’s central bank and designed to function as official legal tender.
Digital Yuan
China’s central bank digital currency, a digital form of the yuan issued by the People’s Bank of China for everyday payments.
Retail CBDC
A retail CBDC is digital central bank money designed for everyday use by the public, similar to digital cash.
Wholesale CBDC
A wholesale CBDC is central bank digital money designed for use by banks and other financial institutions, not the general public.