Digital euro: European Central Bank takes cautious measures

The European Central Bank said on Wednesday it is launching a two-year investigation on whether to introduce a digital version of the euro that would complement cash, taking a cautious step toward introduction as central bankers around the world eye digital currencies and their potential impact on policy and the financial system. The ECB said in a statement that the digital euro must be able to meet consumers’ needs while helping prevent illegal activity such as money laundering and must not have an adverse impact on financial stability and monetary policy.

Digitalization “is reaching all areas of our lives,” Fabio Panetta, a member of the ECB’s executive board, wrote in a blog post.