The importance of cash is gradually declining, but the pandemic is increasingly accelerating this process.
The EU Commission supports plans by the European Central Bank to introduce the digital euro. “This requires the digitization of the economy and finance,” said Commission Vice-President Valdis Dombrovskis the “Handelsblatt” (Thursday) and other European media. “We are observing that the importance of cash is gradually declining. A digital euro is an additional way of paying and saving.”
The digital form of the European currency should not replace cash, but complement it. Regarding the timetable, Dombrovskis said: “We do not yet have a fixed timetable for the digital euro. ECB President Lagarde mentioned a period of five years. That is at least an indication.” The Commission is working with the ECB in an expert group to “clarify the institutional, legal and practical aspects of creating a digital euro,” said Dombrovskis.
