Conference of the OeNB and WKÖ discusses the possible introduction of a digital euro
Vienna (OTS) – The Austrian National Bank (OeNB) discussed the possible introduction of one at a conference organized jointly with the Austrian Chamber of Commerce (WKÖ) on the topic of “Euro 2.0 – the euro is (also) becoming digital” with representatives from the financial sector, trade and business digital euro as a supplement to cash. “For the central banks of the Eurosystem, open exchange with all interest groups is of great importance in order to ensure that the digital euro meets the highest standards,” said OeNB Governor Robert Holzmann.
In his opening remarks, Governor Holzmann also recalled the history of the euro, which was introduced 25 years ago as book money in twelve EU member states. Three years later, euro cash was introduced on January 1, 2002. Today 20 countries have the euro as their common currency. Governor Holzmann describes what a digital euro would mean as a supplement to cash: “The digital euro could usher in a new era of monetary union. For the first time, private individuals would have access to digital central bank money, i.e. to public money with which they could pay digitally throughout the euro area. The digital euro would close the gaps where cash cannot reach, such as in electronic commerce. And it would ensure that disadvantaged people can also pay digitally using a public, free means of payment.”
The fact that the digital euro and euro cash are two complementary forms of public money is particularly important to Governor Holzmann: “The digital euro will be the safest complement to cash. It will also be the first European payment method that can be used to make digital payments throughout the euro area. It ensures independent monetary policy, Europe’s autonomy and resilience in payment transactions.”
Petia Niederländer, Director of the OeNB Department for Payments, Risk Monitoring and Financial Education, adds: “Compared to private mobile payment solutions, which are often only accepted regionally, the digital euro will be a legal tender throughout the euro area. It will build on the existing financial system and be processed via a European payment platform. The issue and all basic services in connection with the digital euro will be free of charge. The Eurosystem will bear the costs of the payment infrastructure itself and payment service providers will not be charged any participation fees.”
“As we move into the digital age, a digital euro would complement cash – as a simple, private and free digital payment option,” explained Adviser Alessandro Giovannini from the European Central Bank (ECB). “For over 20 years, people have been able to pay with euro cash everywhere in the euro area. A digital euro would ensure that in the future we can also pay digitally everywhere with money issued by the European Central Bank, thus closing a gap in payment transactions. So far, private, non-European payment providers have dominated here. But the digital euro doesn’t just affect payment transactions; it also brings Europeans closer together.”
“The euro is a successful project that makes the EU tangible and understandable for its citizens. It is only legitimate that we are talking about the further development of our common currency today. However, it is important to weigh up opportunities and concerns wisely and carefully and to communicate them transparently. As with any innovation, the economy is open to it. But it is also clear: The digital euro should not simply be a competing product for private payment solutions, but must bring real added value to the economy and the population, but also to banks and other payment service providers,” said WKÖ Vice President Philipp Gady, who further emphasized: “Especially when it comes to far-reaching decisions in particularly sensitive areas of society, open dialogue is crucial for acceptance. With our event we would like to make a contribution to this and promote the exchange of arguments.”
There is a short video about the digital euro on the OeNB’s YouTube channel for information:
https://www.youtube.com/watch?v=J__9OgTG-Oc
Questions & Contact:
National Bank of Austria
Mag. Maria-Elisabeth Faulmann
Press spokesperson
(+43-1) 404 20-6900
maria-elisabeth.faulmann@oenb.at
www.oenb.at