The Digital Euro in the Context of the Evolution of Finance

Nikolay Lazarov

Economic Thought journal, 2026, issue 1, 126-155

Abstract: The digital euro is a European Central Bank initiative to introduce an electronic form of central bank money for public use. This study analyses the potential impact of the digital euro on consumer behaviour at point-of-sale transactions within the eurozone, applying a scenario modelling approach with three adoption levels: low, moderate, and aggressive. Baseline data are derived from the ECB’s SPACE 2024 survey. The model forecasts the displacement of cash and partial substitution of card payments by the digital euro, with the aggressive scenario reaching a 45% share of POS transactions over a 10-year horizon. The analysis incorporates sceptical viewpoints concerning realistic assumptions, country-specific cultural preferences, and the private sector’s strategic response. Results suggest that the digital euro could significantly reshape payment structures, although the speed and scale of adoption will depend upon regulatory frameworks, technological infrastructure, and incentives for both consumers and merchants.

JEL-codes: E42 E58 G21 O33 (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://etj.iki.bas.bg/storage/app/uploads/public/ ... b8151ce300309681.pdf

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:bas:econth:y:2026:i:1:p:126-155

Access Statistics for this article

More articles in Economic Thought journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().