What Are the Advantages and Disadvantages of a Digital Central Bank Currency?

The introduction of a digital euro has been in discussion in the eurozone for some time. The European Central Bank’s investigation phase started in October 2021 and entered a preparatory phase in October 2023. Digital central bank money is already being used in other countries. The introduction of a digital euro raises many questions that affect households and companies, commercial banks and the central bank. Among other things, the following questions arise: Why do we need a digital central bank currency today? What requirements must an additional form of money issued by a central bank fulfil? What are the risks and opportunities associated with the digital euro?