ECB Confirms Cash Will Remain Essential Alongside Digital Euro

The European Central Bank (ECB) reaffirms the importance of cash as it advances plans for a digital euro. ECB Executive Board member Piero Cipollone states that euro banknotes and coins will remain central to payments, even with the introduction of a state-backed digital euro.

Key Points from ECB's Announcement

The digital euro will coexist with physical money, ensuring both have full legal tender status.
Cipollone warns against the risks posed by privately issued stablecoins in cross-border transactions.
A working paper indicates low public interest in a digital euro, with most respondents preferring cash and traditional deposits.
Regulators express concern over the rise of dollar-pegged stablecoins, highlighting the need for regulatory frameworks.
The ECB aims to ensure that innovation does not compromise financial stability.

The ECB's digital euro rollout will consider the diverse needs of Europeans, including those in areas with limited internet access.