Digitalisation has heralded the next stage in the evolution of money. In addition to the familiar forms of money such as cash or bank money, a new form is now emerging: digital money. An ecosystem of different (regulated) forms of money will emerge, for which the technical and regulatory foundations are now being created. This development opens up new opportunities for banks, regulated institutions and fintechs, but it also brings with it numerous challenges that need to be identified, analysed and addressed.
The Digital Euro
The European Central Bank (ECB) is working with the national central banks of the eurozone to examine the possible issue of a digital euro. This digital European currency would be an electronic equivalent to cash. The ECB's project has been in the preparatory phase since November 2023, with the aim