Journal of
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Archive » October 2023 » Digital euro and banks, towards what future?

Digital euro and banks, towards what future?

Paolo Mottura
October 2023 - n. 10
Keywords: Euro digitale, banche, modelli operativi
Jel codes: E42, E51, E58, G21, G28

On 1 November, the Ecb launched the second phase of the digital euro, the preparatory phase, with an initial duration of two years. The first phase outlined a few elements, including the fundamental choice not to remunerate digitaleuro accounts. Other issues, such as how to avoid direct competition between digital euro accounts and bank deposits, which would have impacts on deposits and credit, remain open. Other critical aspects include the privacy of digital euro accounts, the control of their authenticity, the number of accounts for each citizen, the characteristics of the accounts for businesses, the automatic cascade mechanism of inflows and outflows (waterfall). In the background there is the opportunity for European control of payment circuits, which are currently owned and managed by non- European entities.

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