Bundesbank: Nagel: Paying with digital euros will be possible in a few years

Bundesbank President Joachim Nagel is convinced that the digital euro will be part of everyday life in just a few years.

In about four years “we will (…) be able to pay with the digital euro,” Nagel predicted in an interview with Baden-Württemberg Finance Minister Danyal Bayaz (Greens) in the latest episode of the podcast “Cäshflow – a podcast about money and politics “, which the ministry in Stuttgart published on Thursday. “It’s not entirely trivial to implement the topic, but I think that’s a realistic time horizon.”

Preparations for a digital version of the European common currency have been going on for years. At the end of June, the EU Commission presented its proposals for a legal framework for the digital euro. The digital euro should therefore become legal tender, but not replace notes and coins. The European Central Bank (ECB) wants to decide in October whether to continue working on a digital euro.

Stabilize alternative to cryptocurrencies

In contrast to so-called cryptocurrencies such as bitcoin and ether, whose rates often fluctuate greatly, the introduction of a virtual European currency would offer private investors a more stable alternative, as it would be linked one-to-one to the euro. In addition, with a digital euro, Europe would have its own offer for digital payments as an alternative to payment service providers that are not based in Europe, such as the US giant Paypal.

It is “quite logical and consistent that the central banks supplement their product range with a digital currency and ensure a secure infrastructure,” said Nagel. “The people, but also the banks that we need for the digital euro, will soon see that the digital euro offers new opportunities, new financial products that increase financial inclusion.” He is certain that “the digital euro, like the euro itself, will be a success story,” said the Bundesbank President.