EU to take one giant leap towards digital euro

The EU will take the next crucial step towards launching a digital version of the euro.

The EU will take the next crucial step on Wednesday towards launching a digital version of the euro, a controversial project that has come under attack from the public, politicians and banks before it even exists.

From China to the United States, Jamaica to Japan, dozens of central banks worldwide are exploring or have already put in place digital currencies as electronic payments dominate the way people spend their money and cash usage dwindles.

The move to create a digital version of the single currency began in 2020 when European Central Bank (ECB) President Christine Lagarde suggested the idea and the Frankfurt-based body launched a public consultation.

Digital euro enthusiasts say it will complement cash and ensure the ECB does not leave a gap that could be filled by private, usually non-European, players and other central banks.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Critics question the need for a digital euro and banks warn of major risks, while the ECB's own study found the public was concerned over payment privacy.

"If we are just duplicating the existing payment infrastructure with the digital euro, that is not a good enough business case. For the time being, the digital euro seems to be a solution in search of a problem," German MEP Markus Ferber told AFP.