On December 15, 2023, the Governor of the Bank of Slovenia, Mr. Bostjan Vasle, delivered a presentation entitled "The Digital Euro: A Combination of Cash and Technology" ("digital euro: cash meets technology") to elaborate on the progress and characteristics of the digital euro. The Institute of Financial Technology of Chinese Minmin University (WeChat ID: ruc fintech) compiled the core content.
* |bis
Compile |Fu Zewei.
Ladies and gentlemen, dear guests: Good afternoon and welcome to the digital event of the Bank of Slovenia!
As digitalization moves at a rapid pace, so do the monetary, payment, and financial systems. In today's event, we will explain:What the Digital Euro project is about, how it's progressing, and what this means for our currency
Money and payments have been digitized for decades. The euro has existed electronically since its introduction as a commercial bank currency. Still, most people insist on paying in cash. However, this pattern is gradually changing. Today, most cashless payments in Europe are debit cards, especially credit cards. In addition, for transactions between consumers themselves and with businesses, instant payments appeared about 20 years ago. This makes the transaction take a few seconds, regardless of the date or time of payment.
In addition to technological advances, external shocks also played a positive role in this event. i.e. the epidemic,Provides an additional boost to contactless payments。However, instant payments are not yet the new normal and are still limited, especially for cross-border transfers. At the same time, central bank funds are currently only available to the public in physical form in cash. Providing central bank money and cash to everyone, also in digital form, can help us ensure that our common currency, the euro, is fit for the digital age。Here, I would like to mention three aspects:
First of all, there is the digital euro,European citizens and businesses will be able to pay and receive instant digital payments for free throughout the Eurozone。Digital euros can be used for in-store purchases and online purchases, as well as for transfers to other individuals. With the digital euro, it is possible to connect via the internet like other digital payment methods, but we also strive to provide offline payments. It is important to emphasise that consumers do not currently have access to this universal pan-European payment method.
Secondly, the launch of the digital euro will increase competition in the digital payment market, improve overall efficiency, and reduce the cost of payment services.
Thirdly, the most important thing for us is that through the digital euro, we willStrengthen the monetary sovereignty of the eurozone and maintain the effectiveness of monetary policy
In general,The digitization of public funds seems to be a necessity, not just an opportunity。At this point, readiness is the key concept we are following. That's why, these days, the vast majority of central banks are considering using their own digital currencies.
We are only beginning the preparatory phase after the European system recently completed its investigation phase. Therefore,We don't have all the answers yet, but we're keeping ready when or when it's going to be introduced。In order to share with you the results of the work done so far, and to address the issue of disclosure, I invited my colleagues, central bank leaders from Croatia, Estonia, Lithuania, Malta and Slovakia, to share our knowledge and views on the digital euro.
endEdited by Fu Zewei.
Editor-in-charge: Xin Huayu.
Extended reading] bis |The Digital Euro – Europe's OpportunityThe Digital Euro Project – a new milestone for the ECB |Case study of the role of the public and private sectors in the digital euro ecosystem |Digital Euros.