The European Central Bank has to decide whether to give the green light to the digital euro this year. If approved, what would it mean for the single currency? And what would change for consumers?
The digital euro has taken a further step towards becoming a reality as the European Commission published its proposal last week.
Cashless payments are increasing worldwide and the trend is expected to continue in Europe, rising from 286.5 billion transactions in 2022 to 466.8 billion in 2026. According to the European Commission, 55% of European citizens prefer this type of payment.
But while a digital euro opens the door to a new economic chapter, it does not come without controversy. Banks, politicians and individuals have all raised concerns, one of the main ones being people's privacy.
The European Central Bank is due to decide in the coming months whether to go ahead with the digital euro. Amid this climate of expectation and apprehension, we spoke to Maria Demertzis, a senior economist at the Brussels-based think tank Bruegel, to answer some of the questions citizens are asking.
What will be the difference between the euro we use today and the digital one? Will it replace cash? Will I have to pay to use it? Will my privacy be at risk? And when will it be available?
Watch the video above.
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