Can the Digital Euro be made attractive to all key stakeholders?

Michael Salmony
Additional contact information
Michael Salmony: CEO Payments Innovation Consulting, Germany

Journal of Digital Banking, 2024, vol. 9, issue 3, 238-258

Abstract: This paper explores the challenges and opportunities related to the adoption of central bank digital currencies (CBDCs), with a particular focus on the Digital Euro. It critically examines the motivations behind the introduction of the Digital Euro, addressing the often unclear problems it is intended to solve. The paper emphasises the necessity of motivating key stakeholders, especially commercial banks, consumers and merchants, to support and use the Digital Euro. It argues that simply mandating adoption is insufficient for success; instead, intrinsic motivation and clear business cases for each stakeholder group are essential. The paper also highlights the potential risks and unintended consequences of the Digital Euro, particularly its impact on commercial banks and the broader economy. Additionally, the paper proposes that an offline CBDC, resembling a modern form of cash, might offer a viable path forward, providing benefits such as increased financial inclusion and enhanced privacy. Ultimately, the reader can expect to gain insights into the complexities of CBDC adoption, the strategic considerations for different stakeholders and the potential models for making the Digital Euro a success.

Keywords: Central Bank Digital Currency (CBDC); Digital Euro (D€); payments ecosystem; stakeholder motivation; offline payments; finance innovation; digital finance policy; financial inclusion (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/9000/download/ (application/pdf)
https://hstalks.com/article/9000/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jdb000:y:2024:v:9:i:3:p:238-258

Access Statistics for this article

More articles in Journal of Digital Banking from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().