ECB tasks

Annelieke A.M. Mooij

Chapter 4 in Designing the Digital Euro, 2026, pp 26-36 from Edward Elgar Publishing

Abstract: This chapter examines the European Central Bank's (ECB’s) roles in designing and implementing the digital euro, as outlined in the legislative proposal. Under article 127(2) TFEU, the ECB's core tasks include monetary policy, smooth payment systems, foreign exchange management, and issuing legal tender. The chapter highlights risks such as reduced banking liquidity from high digital euro uptake, especially during crises, which the proposal mitigates by allowing caps on individual holdings. It also explores the digital euro's potential to improve payment efficiency and financial inclusion, while addressing privacy and independence concerns. The chapter emphasizes the ECB's exclusive competence to issue legal tender and the need for the digital euro to align with its responsibility to manage the monetary base. Ultimately, the design must balance innovation with safeguarding financial stability and fulfilling the ECB's core mandates.

Keywords: Digital Euro; CBDC; ECB tasks; ECB mandate (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035390632
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