DK Position Paper on the Current Discussion on the ECB's Digital Euro

The ECB is pushing ahead with preliminary investigations regarding a Digital Euro at high speed. A digital euro can offer added value for the economy and society if it is designed properly. However, if it is not designed properly, a Digital Euro is associated with major risks that affect financial market stability, for example. That is why the development of a Digital Euro must be carefully considered and legitimized as part of the political process. The latest position paper of the German Banking Industry Committee (GBIC) classifies the ECB's design principles for a Digital Euro and sheds light on the potential impact on the existing and proven two-tiered monetary system. It also outlines a future monetary system consisting of digital complements to existing forms of money.