A paper from a European Parliament committee assesses the state of preparation for the possible launch of a digital euro. It focuses on the main relevant aspects: market impact, implications for banks, design and technical issues, monetary policy, financial stability, the role of fintech and bigtech, international dimensions, privacy, and financial inclusion.
The concluding judgment is broadly positive on the preparatory work but doubtful on the wisdom of eventually launching a digital euro.
According to the report: “Launching a digital euro would put the [European Central Bank] in a new position: that of offering a new payment instrument in competition with banks and other payment service providers. It is not clear that there is a market niche for a [prospective digital euro], nor that a PDE would have a good chance of establishing itself in today’s highly diversified, competitive, innovative, and fast-moving retail payment industry.”