Is the digital euro coming?

VBKI 2023 – Impuls – Kommt der Digitale Euro? Im Gespräch mit Prof. Dr. Johannes Beermann (Rechtsanwalt)

Is the digital euro coming?

Former Bundesbank board member Prof. Dr. Beermann explains the ECB plans

Text Kai Drabe | Chairman of the Finance and Sustainability Committee

The ECB is planning to introduce the digital euro. What is it all about? What is the added value in times of Paypal, VISA, Bitcoin and co? What are the advantages and disadvantages for companies on the one hand and for the "normal consumer" on the other? And what will happen to cash?

With the help of former Bundesbank board member Prof. Dr. Johannes Beermann and the Committee for Finance and Sustainability in the VBKI, we discussed these and other questions. Prof. Dr. Beermann was a member of the Executive Board of the Deutsche Bundesbank from January 2015 to December 2022.

First, Prof. Dr. Johannes Beermann brought the 60 or so participants at the event up to date with a presentation on money, central bank money, crypto and CBDC (Central Bank Digital Currency) - i.e. digital central bank money. The "digital euro" is therefore nothing other than digital central bank money or CBDC. The presentation was followed by a lively Q&A session. The topics ranged from concerns about security and total control to simplification and cost benefits in processing instead of expensive and security-intensive cash processing.

The "digital euro" is nothing more than digital central bank money or CBDC.

Former Bundesbank board member Prof. Dr. Beermann provides answers on the digital euro

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The evening's guest did not fail to provide any answers. Compared to today's "digital" payment methods using credit cards or other payment service providers, a digital euro would eliminate considerable transaction costs and "middlemen" would no longer be necessary. In contrast to the current options of electronic or card-based payments - the acceptance and acceptance of which is "voluntary" - the digital euro would be a legal means of payment with a general obligation to accept payments. The decision to introduce it would not be taken at national level, but by the ECB as the "mother of the euro".

CBDC developments and launches are being driven forward worldwide. The final question to Prof. Dr. Beermann was: "Is the digital EURO coming now?" The clear answer was: "Yes!" Acceptance and trust from the population will determine its success. One thing is clear: the topic will continue to occupy us and the VBKI's Finance and Sustainability Committee will continue to monitor it.

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